The Securities and Exchange Board of India has directed mutual fund houses to re-categorise all their schemes in the new and distinct categories specified by the board. In the debt space there are 16 new categories under which the fund houses will be aligning their existing and new schemes. This move by the regulator is intended to bring uniformity in the practice of categorizing schemes across mutual funds.
Several mutual fund houses have started changing the attributes of their schemes, while others are merging schemes to comply by the new regulations. Sebi released its order to standardize the scheme categories and characteristics of each category in October, 2017.
