Investment not to exceed 30 per cent of net assets of debt-oriented schemes

The Securities and Exchange Board of India (SEBI), on Saturday, allowed debt-oriented mutual fund schemes to invest in housing finance companies (HFCs).

“Additional exposure to the financial services sector (over and above the existing 30 per cent) not exceeding 10 per cent of the net assets of the scheme in debt-oriented mutual fund schemes will be allowed by way of increase in exposure to HFCs only,” SEBI said in a press release, after its board meeting here. However, the total investment in HFCs cannot exceed 30 per cent of the net assets of the scheme.

Uniform guidelines

SEBI has also decided to frame uniform guidelines for various categories of investors such as FII, foreign venture capital investor (FVCI), NRI and QFI.

This is “with a view to rationalising different routes for foreign portfolio investments.”

In this regard, SEBI will prepare a draft guideline based on the guidance of the Working Group on Foreign Investment in India (WGFII), for consideration of the government.

To ensure compliance with rule 19A of SCRR within the specified timelines by listed entities,

SEBI would initiate a process with the market participants to elicit a concrete plan of action and resolve issues, if any. “Stock exchanges shall carefully monitor adherence and take steps to issue advisories to shareholders of non-compliant companies about potential penal actions, so that investors have adequate time to safeguard their interests,” SEBI said.

The SEBI board also approved proposal to suitably amend the SEBI (Depositories and Participants) Regulations, 1996, to enable the regulator to take appropriate action against non-compliant issuers or their agents under the D&P Regulations and to empower depositories to take appropriate action against such issuer or agent as per their bye-laws.

SEBI said that it had seen in the past that there were instances of non-compliance such as lack of reconciliation of issued or listed capital and actual share capital by the issuer company and its appointed RTA. Casualty