Sebi issues clarification on asset allocation framework for multi-cap MFs

In its latest press release, Sebi noted that some sections of media have reported various views on the circular and various conclusions are being drawn

Regulator Sebi on Sunday said that mutual funds have many options to meet with the requirements of its circular pertaining to asset allocation framework for multi cap schemes based on the preference of their unit holders.

In a press release, the markets watchdog clarified that apart from rebalancing their portfolio in the Multi Cap schemes, mutual funds (MF) could inter-alia facilitate switch to other schemes by unit holders, merge their Multi Cap scheme with Large Cap scheme or convert their Multi Cap scheme to another scheme category, for instance, Large cum Mid Cap scheme.

The clarification came after the regulator