SEBI Seeks Public Opinion on New Asset Class Proposal

Livemint
Livemint
1y ago
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The Securities and Exchange Board of India (SEBI) has invited public comments on a proposal to introduce a new asset class that would bridge the gap between mutual funds and portfolio management services (PMS). This initiative aims to provide investors with an alternative investment option that combines features of both mutual funds and PMS, potentially offering better returns and more flexibility.
SEBI Seeks Public Opinion on New Asset Class Proposal
A What happened
The Securities and Exchange Board of India (SEBI) has invited public comments on a proposal to introduce a new asset class that would bridge the gap between mutual funds and portfolio management services (PMS). This initiative aims to provide investors with an alternative investment option that combines features of both mutual funds and PMS, potentially offering better returns and more flexibility.
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Key insights

  • 1

    Objective of the Proposal: SEBI aims to create a new asset class that balances the features of mutual funds and PMS, offering a middle ground in terms of investment size and management style.

  • 2

    Stakeholder Involvement: Public comments are being solicited to ensure that the proposal is comprehensive and meets the needs of various stakeholders, from retail investors to financial institutions.

  • 3

    Potential Benefits: This new asset class could provide investors with more tailored investment options, potentially leading to better risk management and returns.

  • 4

    Regulatory Impact: The introduction of this asset class may lead to changes in regulatory frameworks, aiming to better protect investors and maintain market integrity.

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Business & Markets Personal Finance