SEBI urges investors to inform investors about risks in small, mid-cap funds

-


Mumbai: Among the small, mid-cap stocks, the prices of many stocks in the Indian stock markets have become overvalued and in this regard, analysts and experts are warning investors to be careful in new investments. Now the capital market regulator Securities and Exchange Board of India (SEBI) has also urged the asset managers of small and mid cap funds to provide more information to their investors about the risks associated with these funds to protect the interests of investors.

According to a report, small, mid-sized funds have witnessed an extraordinary inflow of investment, so that the regulatory body has become alert as to how the situation can be controlled in case of any major sell-off in the market. Sources have also said that SEBI has also reviewed the stress tests conducted by such funds.

People with knowledge of the matter and a fund manager said that SEBI has asked the fund's asset managers to provide more information to investors about the risks associated with small and mid-cap funds.

Funds should disclose information about how the Funds will meet large redemptions in the event of any potential market crash or sell-off and how these extraordinary outflows-redemptions may affect the value of their portfolios and how much cash and liquid assets they have to meet these large outflows-redemptions. It has been stated.

Meanwhile, the informants say that the investment committees are always aware of the liquidity challenges, but the investors are not aware. Once this information is available to them, they can compare each fund.

The Association of Mutual Funds in India (AMFI), working with SEBI, has suggested a common framework for risk disclosures and disclosures will be made on a regular basis. It may be mentioned that, due to the huge flow of investment, the Nifty Small Cap 250 index has increased by more than 71 percent and the Nifty Mid Cap 1000 index by 64 percent in the last one year. While the Nifty 50 index has increased by 28 percent.

Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se
Read more