The Securities and Exchange Board of India (Sebi) has decided to inspect the G-Sec dealings of the mutual fund industry.
The market regulator has asked all mutual funds for data relating to their G-Sec transactions. Sebi is collecting the data to check if the G-sec transactions are in compliance with the prescribed norms.
The Sebi move follows a request by the Reserve Bank of India (RBI) to look into the transactions of JM Mutual Fund and two private investment companies in thinly-traded government bonds sourced from urban co-operative banks (UCBs).
According to the central bank, the mutual fund acted as intermediary in certain G-Sec transactions which