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SEBI Allows Side-Pocketing Of MFs, Easier Start-up Listing Norms

Roshni Agarwal

In a series of reforms, market regulator SEBI has allowed side-pocketing of mutual funds wherein there is allowed a segregation of mutual fund schemes into distressed, illiquid or hard to value categories from more liquid funds in a portfolio.

Also read: What is side-pocketing of mutual fund?

The watchdog has also advocated simpler listing norms in case of start-up firms. To further reduce stake in listed company, SEBI has also allowed extension of offer for sale or OFS mechanism. There has also been relaxation in respect of investment limit norms for well-regulated foreign investors.

"The board also took note of the proposal to review the valuation norms applicable to mutual fund schemes investing in debt and money market instruments," SEBI said in a statement.

Also, it said that the previously proposed method to value bond uniformly across the financial sector shall not be implemented.

The SEBI also informed about initiating adjudication against CRAs in IL&FS case. IL&FS defaulted on debt repayments which hit the overall NBFC sector hard.

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