Stocks in the mid-cap space are likely to see investments worth Rs 19,000 crore ($2.9 billion) by domestic mutual funds (MFs) over the next three months, on account of new norms by the Securities and Exchange Board of India (Sebi) on categorisation of MF schemes.
The market regulator in October came out with a circular on “categorisation and rationalisation of MF schemes”, in which it has for the first time clearly defined which companies fall in the large-cap, mid-cap and small-cap categories. It has also set new asset allocation requirements for major categories under equity schemes.
“Our key conclusion is that those