The mutual fund (MF) industry grew by leaps and bounds in the last decade. To continue this momentum, innovation, competition, and consolidation have to form the bedrock of the industry. Recognising this, in April 2022, Sebi set up a working group to review the role and eligibility of a sponsor of an MF. Under the chairmanship of A Balasubramanian (MD/CEO, Aditya Birla Sun Life AMC), the terms of reference of this group are to recommend an alternative set of eligibility criteria for entities to act as sponsors, review the existing eligibility requirements for being a sponsor, recommend mechanisms for addressing conflicts of interest that may arise if pooled investment vehicles/private equity (PE) act as sponsors, and examine the need for sponsors to dilute their stake in asset management companies (AMCs).
HDFC Manufacturing Fund raises over Rs 9,500 crore
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