Sebi likely to introduce MF-Lite regulations for passive funds: Madhabi Puri Buch

Mumbai, Sep 27, 2024

Synopsis
“We had a very detailed consultation on that and if as a part of that you feel that there needs to be relaxation in terms of how to do distribution of those kind of passive funds. We are open to any kind of suggestions so that we can facilitate growth of these funds across the country,” Buch said at an industry event.

The Securities and Exchange Board of India (Sebi) is on the verge of introducing MF- Lite regulations for passive funds, its chief Madhabi Puri Buch said on Thursday.

“We had a very detailed consultation on that and if as a part of that you feel that there needs to be relaxation in terms of how to do distribution of those kind of passive funds. We are open to any kind of suggestions so that we can facilitate growth of these funds across the country,” Buch said at an industry event.

The Sebi chairperson said technology advancements could help the corporate bond market to grow as rapidly as the equities market.

“…I think the transparency that has come in and the way in which there is now technology enablement, we certainly hope that the bond market will rapidly see the kind of growth that we have seen in the equity markets,” Buch said.

The primary market activity on corporate bonds is healthy with issuances exceeding Rs 8.50 lakh crore in FY24, but it is the secondary market where there is a dearth of activity, she said.

The Sebi chief who is facing allegations of impropriety by the Congress party, also said if she speaks about Real Estate Investment Trusts and ICICI Bank it is considered as potential conflict of interest.

[The Economic Times]