SEBI Hauls Up MFS Over Standstill Pacts

Rules bar such agreements, says Tyagi

The Securities and Exchange Board of India (SEBI) has pulled up mutual funds for entering into standstill agreements with promoters and has clarified that regulations do not have provisions for such arrangement between corporates and asset management companies (AMCs).

“It is not there in any of the regulations. We have made our position clear. Entities have to follow the regulations that are there. There is no confusion in that,” SEBI chairman Ajay Tyagi said at a capital market conference organised by industry body FICCI.

The SEBI chief was replying to a specific query on how some fund houses were entering into such standstill agreements.

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