At the recent Confederation of Indian Industry Mutual Fund (MF) Summit, Securities and Exchange Board of India (SEBI) executive director Manoj Kumar catalysed industry optimism by signalling a potential revisit of regulation 24(b) of the SEBI (Mutual Funds) Regulations, 1996. The provision, long seen as a constraint, prohibits asset management companies (AMCs) from taking up fund management activities beyond MFs except through SEBI-approved subsidiaries. It also mandates separate teams for fund management, even for back-office functions. Even some distinction between broad-based and non-broad-based funds should be done away with so long as it is clean money.
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