The Securities and Exchange Board of India (Sebi) on Thursday approved norms to improve governance in mutual funds and credit rating agencies and deepen the securities markets. Sebi also did its bit to help tackle India’s Rs10 trillion stressed asset problem at a meeting of its board in Mumbai.
For both mutual funds and credit raters, the markets regulator proposed to restrict cross-holding. Thus, a sponsor of a mutual fund or its associates cannot hold more than 10% in any other asset management company or have a board seat.
