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A mid-sized fund house recently sidestepped the market regulator's diktat requiring balanced funds to invest equally in debt and equity by rechristening it an 'asset allocation' fund. Encouraged by the nod given to the fund, a few other houses asked the regulator to reconsider their offer documents for balanced funds that were rejected earlier, as they had a 65:35 asset mix in favour of equities.
MF ranking system set for a rehaul?
There could be good news for fund houses which have been concentrating on collecting equity money. Sources say several top members of the Association of Mutual Funds in India have been discussing how to make the ranking system more realistic. One method under consideration is by removing the liquid fund assets while declaring the assets under management. "Fund houses should be encouraged to do this because it will make their valuations more dependable," says one chief executive of a fund house, while declaring his ranking would take a leap from the late-30s to 15.
Sebi scouts for more space in upscale Bandra-Kurla Complex
The Securities and Exchange Board of India (Sebi) is scouting for a new place in Mumbai's Bandra-Kurla Complex, where the regulator is headquartered. The new place is to accommodate new employees coming under Sebi's fold on account of its merger with the Forward Markets Commission. According to sources, Sebi has already made a request to the government for grants to tide over the financial burden associated with the merger.
