UPSC Practice recommends SEBI, think right to push MF innovation.
Safeguards to protect retail investors are in order while expanding the reach of MF products. Sebi’s extant rules require the sponsor of the MF to hold at least 40% in the AMC, besides having operated in the financial services business for a period of not less than five years. The entity should also have a net worth of ₹50 crore and have posted a net profit in three out of the immediately preceding five years.
Courtesy: Opinion-Economic Times