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Home » Finance » Capital adequacy for MFs? Duh! Come on Sebi, mutual funds are not banks

Capital adequacy for MFs? Duh! Come on Sebi, mutual funds are not banks

Gautam Chikermane’s tweets

For a regulator to claim that mutual funds need capital adequacy and raise the threshold of that adequacy five-fold to Rs 50 crore shows a sublime ignorance of finance. Coming from the capital markets regulator, the Securities and Exchange Board of India (SEBI), that has seen an upgrade in its regulatory and financial capacity over the years with every passing chairman, this is disappointing. There is clearly a case of anti-competitive practice lingering somewhere in this ill-conceived and unwarranted action. And that’s about the best thing that can be said – devoid of logic, empty of explanations and with no justification as to why this has been done, fingers could point to a regulatory capture of the regulator.
My column in Firstbiz

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