Capital markets regulator Sebi’s attempt to improve prudential regulation that includes tighter investment rules for debt mutual funds and stricter disclosure for promoters’ share pledges is welcome. The idea is to make these schemes more secure, particularly after the IL&FS default that exposed the vulnerability of non-banking financial companies (NBFCs). The new rules mandate liquid funds to hold at least 20% of their money in liquid assets such as G-secs, cash, T-bills and so on.