The securities exchange board of India (SEBI) is considering a proposal made by the association of Mutual Funds in India (AMFI) on the recent changes made in investment norms of multi-cap funds. It reiterated that it is not in favor of forcing mutual funds to invest in something which is not in the interest of the investors.

Addressing the 25th Annual General meeting of AMFI, Ajay Tyagi, Chairman, SEBI said that the recent mandatory multi-cap fund investment of 25% each in large, mid and small caps, were implemented to ensure that the fund remains true to its label. He spoke that it is not the intention of the regulator to force the industry to invest in anything. In this regard, the representation made by AMFI is being examined, and an announcement about it will soon be made public.

Regarding the upfront margin norms for equity trading, Tyagi said that the initial hiccups have settled down, and the markets have adjusted to the new normal. To justify his statement, he indicated the influx of retail investors in the equity market; by comparing the number of Demat accounts opened per month since June to that of earlier months. He spoke that it is the responsibility of SEBI to make the market more transparent and exploitation free.