Sebi modifies investment framework for asset management companies

Market regulator Sebi on Friday modified its framework for asset management companies (AMCs) making investment from the funds raised through a new fund offer.

The move is aimed at ensuring money remains within the scheme, which will provide some cushion to mutual fund unitholders in case of winding up of a scheme, industry experts said.

Under the mutual fund norms, the sponsor or AMC is required to invest at least one per cent of the amount which would be raised in the new fund offer (NFO) or Rs 50 lakh, whichever is less in such option of the scheme.

Now, the regulator has