1. Home
  2. Business
  3. Sebi to shed cross-shareholding cap in mutual funds

Sebi to shed cross-shareholding cap in mutual funds

By Team Pardaphash 
Updated Date

According to the senior officials, markets regulator Sebi is considering to put a 10 per cent cross-shareholding cap in mutual funds sp as to avoid the potential conflict of interest.

Also Read :- Paytm may scrap pre-IPO sale plan, over valuation differences: Report

The new measure may have an impact on the shareholding pattern of UTI Asset Management Company (AMC). State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB) and Life Insurance Corporation (LIC) are having their own mutual funds and at the same time they hold 18.24 per cent stake each in UTI AMC.

The issue would be taken up at the board meeting of Securities and Exchange Board of India (Sebi) tomorrow, they added. Under the proposal, any shareholder owning at least 10 per cent stake in an AMC will not be allowed to have a 10 per cent or more stake in another mutual fund house operating in the country.

Further, a sponsor of a mutual fund, its associates, group company and its asset management company will be restricted from holding 10 per cent or more stake in a rival AMC. In addition, such entities will be barred from having a representation on the board of another mutual fund house.

Also Read :- Airports decide to boost revenue after Tata Group takes over Air India
For the latest news and reviews, follow us on Facebook and Twitter ...