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.
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