REGULATORY ROUNDUP

Change: The Securities and Exchange Board of India (Sebi) directs asset management companies (AMCs) to conduct stress tests on small and mid-cap funds and disclose key findings on liquidity and other aspects.

CAPITAL MARKETS

Impact: It will help investors evaluate different AMCs’ liquidity positions. For instance, investors will know how soon they can get their money back if the equity markets collapse and there is a rush to redeem.

Change: Sebi introduces Beta version of the T+0 rolling settlement cycle on an optional basis in addition to the existing T+1 cycle in the equity cash markets for 25 scrips.

Impact: It will shorten the settlement cycle, bring efficiency, create transparency, and higher liquidity for investors.