Sebi tweaks norms on passive funds

New Delhi: Markets regulator Sebi has streamlined norms for passive funds – index funds and Exchange Traded Funds (ETFs) – pertaining to exposure to securities of group companies of the sponsor to facilitate a level playing field for mutual funds (MFs).

In a notification on Tuesday, Securities and Exchange Board of India (Sebi) has amended mutual fund rules, whereby equity-oriented ETFs and index funds can now invest in the listed securities of group companies of the sponsor beyond 25 per cent of the net assets.