Sunday, September 20
The Securities and Exchange Board of India (Sebi) has proposed changes to mutual fund scheme categorisation to address portfolio overlaps. The regulator may also permit fund houses to launch a second scheme in the same category and invest part of the corpus in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)."It was noted that in the case of some schemes, there was a significant overlap of portfolios. It was therefore felt necessary to introduce clear limits to the industry to avoid schemes with similar portfolios," Sebi said in a discussion paper on Friday.Sebi has proposed new limits on how much two schemes can hold the same securities, in order to ensure clearer differentiation between funds. The regulator has suggested capping portfolio overlap at 50%
