AMFI MAY REVIEW 'DRACONIAN' FRAMEWORK: EXCHANGES GIVE PARTIAL CONCESSION ON MARGIN FUNDING

The BW Businessworld report titled How SEBI’s Licence Raj is Spreading Chaos in Stock Markets, has generated massive interest in financial markets, causing both the Association of Mutual Funds in India and stock exchanges (BSE and NSE) to clarify their positions. But the clarifications generate more curiosity. Read on...

- Palak Shah

THE ASSOCIATION OF MUTUAL Funds in India (AMFI) plans to review the draconian Standard Operating Procedures (SOP) it had issued for mutual funds (MFs) in relation to market regulator the Securities and Exchange Board of India’s (SEBI’s) Prohibition of Insider Trading and market abuse norms. The AMFI clarified this in response to the 19 November, 2024 BW Businessworld report titled How SEBI’s Licence Raj is Spreading Chaos in Stock Markets. (https://www.businessworld.in/article/how-sebis-license-raj-is-spreading-chaosin-stock-markets-539695#goog_rewarded).

The AMFI has written to BW Businessworld saying, “While we plan to review and analyse the outcomes based on experiences from the past few weeks and submit our feedback to SEBI for any necessary adjustments, we observe that the Mutual Fund participation in the equity market is not materially impacted due to implementation of such best practices from November 2, 2024.” The AMFI has further said: “We would like to clarify that AMFI collaborates closely with SEBI to establish best practices, increase transparency, and strengthen investor trust.”

The BW Businessworld