Sebi considers easing norms on MFs' business activities

THE SECURITIES & Exchange Board of India (Sebi) on Monday proposed to ease the broad-basing requirement for asset management companies (AMCs) and permit them to serve pooled non-broad-based funds subject to strong governance and regulatory controls.

- ANANYA GROVER

Currently, Regulation 24(b) of the MF Regulations permits an AMC to provide management and advisory services to pooled assets which are broad-based in nature. AMCs desirous of providing management and advisory services to non-broad-based funds need to mandatorily obtain PMS licence to do the same.

The regulator has taken into consideration the submission of AMCs that these regulations have proven to be a barrier and do not provide a level playing field to them vis-à-vis other intermediaries engaged in providing management and advisory services to non-broad-based funds.