Sebi enables AMCs to tap foreign funds

THE SECURITIES AND Exchange Board of India's (Sebi) proposal to remove restrictions on mutual fund business expansion under Regulation 24, implemented in 2011, is being seen as a positive development by the industry.

- ANANYA GROVER

THE SECURITIES AND Exchange Board of India's (Sebi) proposal to remove restrictions on mutual fund business expansion under Regulation 24, implemented in 2011, is being seen as a positive development by the industry. Industry participants believe the move will, over time, help attract greater foreign capital.

Swarup Anand Mohanty, vice-chairman & CEO, Mirae Asset Investment Managers (India), said: "Sebi's proposal to relax Regulation 24(b) is a positive development that can enhance India's competitiveness as an investment destination. By allowing AMCs to offer advisory and portfolio management services to non-broad-based pooled vehicles without a separate PMS license, it enables greater operational efficiency and expands the scope for engaging with global investors such as family offices, offshore funds, and institutional mandates. This could meaningfully support the flow of foreign capital into India over time."