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'Mutual Funds must remember that they are not banks', says SEBI Chairman Ashok Tyagi

SEBI chairman Ajay Tyagi talking about how these debt mutual funds cannot forget the difference between investing and lending. He also stressed that the expert group for stressed testing will be set up soon.

ET Now's Priyanka on the takeaways on SEBI Chairman Ajay Tyagi

He spoke about the issue illiquidity in the bond market, says SEBI is looking at two options one is contemplating the special limited central player operations for guaranteed settlements of triparty repo rate and all investment rate corporate bonds. The second initiate that SEBI is looking at is to step a backstop facility which can trade relatively in illiquidity trade investment bond. They will be available in tangle stressed by such bonds in various markets.

He also spoke about of setting up an expert committee to frame stress testing methodology from passing issue like liquidity, credit and market risks.