Restrictive MF rules under Sebi review

THE SECURITIES & Exchange Board of India (Sebi) is reviewing restrictive rules for asset management companies under Clause 24(B), which prevents them from undertaking any business activity other than management and advisory services provided to pooled assets, executive director Manoj Kumar said on Tuesday.

- ANANYA GROVER

"Some people in the industry are fully aware that regulation 24(B) is an obstacle," he said at the 18th CII National Mutual Fund Summit. "We are doing a significant review of the regulation."

Sundeep Sikka, chief executive officer of Nippon Life India Asset Management, identified one of the key hurdles. In a panel discussion after Kumar's speech, Sikka said Japanese capital is waiting to come to India, but Section 24B is an hindrance. "A big change is required. It will help us get a lot more foreign capital in India."