AMC stocks in focus as Sebi mulls easing mutual fund business norms
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Shares of asset management companies (AMCs) such as HDFC AMC, Aditya Birla Sun Life AMC, Nippon Life India AMC, and others will be in focus on Tuesday after the Securities and Exchange Board of India (SEBI) proposed easing regulations related to mutual fund (MF) business operations. In a circular issued on Monday, SEBI proposed relaxing the broad-basing requirement under Regulation 24(b) of the MF Regulations. This would allow AMCs to offer management and advisory services to non-broad-based pooled funds, subject to stringent governance standards and regulatory oversight. Currently, AMCs are permitted to offer such services only to broad-based pooled assets. Those seeking to serve non-broad-based funds must obtain a Portfolio Management Services (PMS) licence. Sebi acknowledged that several AMCs have raised concerns that the existing rules limit their ability to compete with other intermediaries offering similar services. The restrictions...