A key consequence of the debt market concerns surrounding groups like IL&FS, DHFL and Essel is that schemes exposed to these groups have seen significant outflows. As more liquid holdings were sold to meet redemption pressures, the share of relatively illiquid DHFL papers that they owned soared. So much so that they have crossed the limits prescribed by the Securities and Exchange Board of India (Sebi) on the amount of exposure a mutual fund can take to a single group or its securities. Despite this extraordinarily high exposure, these schemes remain open for subscription.
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