Protect the interests of investors of small and mid-cap schemes
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| globalinfo9 - SEBI Guidelines |
Small Cap, Mid-Cap - SEBI has directed the mutual fund companies to develop a policy to protect the interests of the investors who have invested in the fund schemes. The information has been sent to the Association of Mutual Funds in India (AMFI) to convey this information to the trustees of the fund companies. It also suggested measures like restrictions on investment in fund schemes, portfolio rebalancing, and guidelines for the protection of investors' interests. Sebi has taken this decision due to significant investments in small and midcap fund schemes for the past few quarters.
SEBI has said that 'as the shares of small and mid-cap segments in the market have increased excessively, and investments in small and mid-cap funds are continuing, the trustees should consult with the Unit Holder Protection Committee of AMCs and come up with a policy to protect the interests of all investors'. AMCs and fund managers should take proper and prompt measures to protect investors. Fund houses have been informed that the new policy should be posted on the website within 21 days.
In the quarter ended December 2023, there was a net investment of Rs 6,468 crore into the midcap segment. Thus the investment continued for 12 consecutive quarters. In the same quarter, there was a net investment of Rs.12,052 crore in the small-cap segment. Notably, this is the highest investment in this segment in a quarter. Remarkably, investments have continued for 11 consecutive quarters in this segment as well.