Mumbai: The Securities and Exchange Board of India will soon come up with policy on close-ended funds, Sebi Chairman Ajay Tyagi said on Thursday. In close-ended equity schemes of mutual funds, investors’ money is locked in for a specified period
Debt mutual fund managers need to be vigilant and appropriately value their investments in corporate paper, even as a bulk of the money comes from institutional investors, Tyagi said. “It is for the mutual fund industry which bears the credit risk. “Issue is in their books when they hold these debt instruments, either long term or short term, they have to be cautious of credit risk and how to value that on their books.”
Tyagi also said the regulator will soon come up with policy on close-ended funds.
Of the total Rs 12.3 trillion assets under management at debt funds, Rs 11.5 trillion is from non-retail investors, Tyagi added.