Can Sebi’s recent circular on multi-cap funds be seen in the context of smaller companies not getting enough capital and liquidity?
Sebi’s circular talks about ‘True to Label’ for multi-cap funds. In Sebi’s view, a multi-cap fund must have exposure to large-cap, mid- and small-cap stocks. The recent IPO of a mid-cap tech company was subscribed more than 100 times. It does indicate that there is enough money for quality company with good promoter in small- and mid-cap space. Sebi has taken several steps, including promotion of SME exchange and liberalisation of listing guidelines, for small- and mid- cap companies to access capital markets.
