India s market regulator, SEBI, has asked money managers to restrict investments in small- and mid-cap stock mutual funds and reduce commissions. The move aims to curb surging inflows into these funds and address the extraordinary exuberance in small- and mid-cap stocks.
In talks with the Association of Mutual Funds in India (AMFI) this month, the Securities and Exchange Board of India (SEBI) asked for small and mid-cap funds internal stress tests so it could determine if they would have adequate liquidity to meet any large outflows, the sources said.
In talks with the Association of Mutual Funds in India (AMFI) this month, the Securities and Exchange Board of India (SEBI) asked for small and mid-cap funds internal stress tests so it could determine if they would have adequate liquidity to meet any large outflows, the sources said.