🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

SEBI accelerates NFO approvals amid robust mutual fund sector growth

Published 19/10/2023, 14:36
© Reuters.
NSEI
-
BSESN
-
HDFA
-

The Securities and Exchange Board of India (SEBI) is expediting New Fund Offer (NFO) approvals in response to a Rs 1 trillion debt mutual fund outflow in September, according to reports on Thursday. This comes as the mutual fund sector witnesses a resurgence, backed by the opening of 77 million new Systematic Investment Plan (SIP) accounts in the first half of the year.

SEBI's swift action on NFO approvals has resulted in a significant reduction in application pendency. Numerous NFOs are now securing regulatory clearances within a month, indicating SEBI's commitment to supporting the mutual fund industry's growth. This comes alongside an increasing stake of individual investors in mutual fund assets.

In other developments, HDFC Asset Management's stock is poised for near-term gains. The company's positive outlook aligns with the broader trend within the mutual fund sector. Additionally, Shriram AMC and Kotak are launching multi-asset allocation funds, further expanding the range of investment options available to investors.

The Sensex, a benchmark stock market index, rose by 165 points on Thursday. This increase occurred despite the index losing 505 points from its peak earlier. The IT sector led the advances, while Public Sector Undertaking (PSU) banks underperformed.

SEBI's recent decision to pause changes to the 'total expense ratio' has also triggered a rally in Asset Management Company (AMC) shares. This move appears to have buoyed investor confidence and contributed to the upward momentum in the market.

Meanwhile, SEBI has criticized the Alternative Investment Fund (AIF) industry for evading regulations. The regulatory body is keen on ensuring compliance across all sectors under its purview as it continues to streamline processes and foster growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.