Sebi clamps down on single-investor schemes

 The Securities and Exchange Board of India (Sebi) may ask the mutual fund industry to categorise funds where a substantial portion of the corpus is held by a single investor as a portfolio management scheme (PMS). According to industry estimates, around 176 mutual fund schemes are virtually running as a PMS.

 Sebi has often expressed concern that certain mutual fund schemes have been treated as a PMS by a single large investor.

 The Association of Mutual Funds of India (AMFI) had recommended that each scheme should have at least 20 investors. However, according to industry insiders, even with this minimum figure it is possible for one or two large investors to corner the bulk of the corpus.

 A direct fallout of Sebi