Sebi has recently made several changes to the 'seggregation of mutual fund portfolio' norms amid covid19 pandemic. The market regulator has allowed mutual funds to side pocket debt in cases where borrowers have approached the mutual fund house for debt restructuring due to stress on account of Covid 19. Before the new rule, a segregated portfolio could be created in a mutual fund scheme by AMC in case of a credit event, which includes downgrade to below investment grade and subsequent downgrades in credit rating by the SEBI registered credit rating agency. These new rules will increase transparency and prevent new investors from participating in the stressed assets, say mutual fund experts.