Sebi has reconstituted its alternative investment policy advisory committee, which advises the capital markets regulator on a range of issues that impact further development of the AIF space.
The committee has now 25 members, as per latest update with the Securities and Exchange Board of
“I do not have doubts about the structural element of the MOFSL study but coming to the point about cyclicality moving out of retail investment, I would like to point out with some data that in investor behaviour and investor psychology, the cyclical element still persists. Right now, the flows have been flagging off and the net flow is nowhere compared to where it was a year or two back.”
"If we just look at data of the last five years of emerging market performance in dollar terms – it is negative, and India is about 7% to 8% positive in the dollar terms. It is negative is because China, Russia, etc., everything has disappointed. Overall, eventually people will realise that this basket approach of investing with BRICS or EMs, etc. in India, may not be working for them. It is probably not a scientifically constructed basket.."
The concentration of fund inflows to small- and mid-caps, as well as overexposure to select sectoral and thematic funds is the reason for this caution.
The ongoing trend of growing flows towards India and the prevailing negative sentiment towards China will persist if Indian markets continue to perform well while Chinese markets face challenges, the market expert said