3 min read.Updated: 22 Oct 2019, 02:47 PM ISTArvind Chari
There may be an impact on short-term money market rates and liquidity
Over the years, capital markets regulator Securities and Exchange Board of India (Sebi) has done a remarkable job in introducing regulations which make mutual funds transparent and accessible and, more importantly, in shaping asset management companies’ (AMCs) behaviour towards working in the interest of investors. Sebi has been even more steadfast in bringing in regulations for debt funds, especially post the 2008 Lehman crisis, when the Reserve Bank of India (RBI) had to open up a liquidity window to help liquid funds and debt funds to meet investor redemptions. The liquid fund and debt fund industry has come a long way since.