In a series of reforms, market regulator SEBI has allowed mutual funds “to allow mutual funds to create segregated portfolios with respect to debt and money market instruments subject to various safeguards”. The creation of segregated portfolios is a mechanism which is followed to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. SEBI has also cleared easing of norms to start startup listings.
The market regulator also proposed to extend offer-for-sale mechanism to reduce stake in listed firms. It also relaxed putting together of investment limit norms for well-regulated foreign investors, it added.
