Mutual fund (MF) houses face some ambiguity in identifying group companies for investment in debtinstruments, in line with the new rules in this regard.
In January, the Securities and Exchange Board of India (Sebi) had introduced group-level limits for debt schemes and fixed the ceiling at 20 per cent of the net asset value (NAV), extendable to 25 per cent, after trustee approval.
The rules were meant to help funds mitigate credit risks and have a more diverse portfolio. They took effect from February 12. All government-owned entities, including public sector banks, would be excluded from these limits.