New asset class may take wing

Decision likely at Sebi board meeting on Sep 30 - first since slew of allegations made against Puri Buch

- KHUSHBOO TIWARI

The Securities and Exchange Board of India (Sebi) may clear the decks for the launch of a new asset class - aimed at bridging the gap between mutual funds (MFs) and portfolio management services (PMS) - along with the MF Lite framework for passive fund houses.

The decision is likely at Sebi's upcoming board meeting on September 30, sources said.

The meeting will be closely watched as it is the first since Congress and short-seller Hindenburg Research alleged conflict of interest against Sebi chairperson Madhabi Puri Buch. The Sebi chair was further caught in the storm amid discontent raised by the employees, who have also submitted a list of demands to the finance ministry.

Typically, the Sebi board - which has representatives from the government and the Reserve Bank of India (RBI) - meets once every quarter to clear securities market-related reforms.

The new product category will cater to investors willing to take riskier bets. The minimum ticket size for such investments will be ₹10 lakh - lower than the minimum threshold of ₹50 lakh specified for PMS.