he Securities and Exchange Board of India (Sebi) may tighten disclosure norms for asset management companies (AMCs) to curb lending to company promoters against pledged shares, two people with direct knowledge of the matter said.
Mutual funds, under increased scrutiny from regulators, have already cut their exposure to such schemes. A Mint analysis of fund house fact sheets and data from Prime Database shows that such exposure has come down by 10% at the end of January from September end. Data also showed that mutual fund lending to promoters against pledged shares has fallen steadily over the last three quarters.
