The Securities & Exchange Board of India (Sebi) has called a meeting with top officials from the mutual fund industry to discuss issues related to debt funds and specifically credit funds.
In the meeting, scheduled for March 4, the Association of Mutual Funds in India (Amfi) will request the markets regulator to come
out with regulations on creation of ‘side pocket’ for all debt funds as a prudent measure.
A ‘side pocket’ option allows fund houses to separate stressed or risky assets from other liquid investments in a debt portfolio which tends to get impacted by the credit profile of underlying instruments.
