Mutual funds huddle to play Sebi's googly on multi-cap schemes

Markets regulator to examine proposals by industry on ensuring compliance with true-to-label and appropriate benchmarking

The Rs 27-trillion domestic mutual fund (MF) industry will soon get into a huddle to decide how to play the Securities and Exchange Board of India’s (Sebi’s) googly on multi-cap schemes.

Sources say the scheme merger, label change or requesting Sebi to introduce a new category are among the options mulled by asset managers.

Industry players will soon build a consensus and approach the markets regulator.

Sebi has also taken a flexible stance. In a statement on Sunday, the regulator said rebalancing is just one of the routes to achieve compliance with the circular and fund houses can opt for other methods as