MUMBAI, Nov. 13 -- The markets regulator has introduced a 'flexi- cap category' for mutual funds (MFs), which will be required to invest at least 65% of the corpus in equity but will have no restrictions on investing in large-, mid- or small-cap company stocks.
In September, the Securities and Exchange Board of India (Sebi) came up with new rules for multi-cap funds, which are required to invest at least 25% of the corpus in large-, midand small-caps. It raised concerns among industry players over the possibility of existing multi-cap funds being forced to buy mid- and small-cap stocks despite these segments not having the liquidity to absorb large flows from MFs. After the circular was issued, the Association of Mutual Funds in India, or ...