Sebi also decided to strengthen corporate governance norms and end practice of individuals having permanent seats at boards of listed companies At its board meet on Wednesday, capital markets regulator Sebi approved regulatory framework to allow private equity funds to sponsor mutual funds.
This decision comes in the backdrop of IDFC Mutual Fund getting acquired by a consortium comprising Bandhan Financial Holdings Ltd, Sovereign Wealth Fund GIC and private equity fund ChrysCapital.
At present, any entity that owns 40 per cent or more stake in a mutual fund is considered as a sponsor and is required to fulfil the eligibility criteria.
Under the alternate eligibility criteria for sponsor of MF, Sebi has proposed that sponsors should adequately capitalise the AMC such that the positive liquid net worth of AMC should be at least Rs 150 crore.
Securities and Exchange Board of India chief also said the regulator will strengthen corporate governance norms and has decided to end practice of individuals having permanent seats at boards of listed companies.
Securities and Exchange Board of India chief Madhabi Puri Buch on Wednesday refused to comment on the Adani-Hindenburg row.
“The regulator does not comment on individual companies. We will follow the advice of the Supreme Court in (the Adani case). We are duty bound to follow it,” she said.
“One of the issues Sebi has been looking into is the spirit of law vs letter of the law. We want to take this forward in the coming year and we have been speaking about what the regulator needs to do about it,” Buch said about the board meet.
