Markets regulator SEBI on Thursday
allowed all exchanges to provide trading in stocks and commodities from October
2018. NSE and BSE Stock exchanges can now launch commodity products on their
platforms. It has also decided to put a
10% cross-shareholding cap in MFs.
The new step may have an impact on
the shareholding pattern of UTI Asset Management Co (AMC), requiring its
promoters to lower their stake to 10% or below in next one year.
State Bank of India, Punjab National Bank,
Bank of Baroda and LIC of India are having their own mutual funds together holding
18.24% stake each in UTI Asset Management Company.
The regulator has decided that any
shareholder owning at least 10% stake in an AMC will not be allowed to have 10%
or more stake in another mutual fund house operating in the country. The move enables in strengthening the governance
structure for mutual funds and helps avoid any conflict of interest.
Besides, Sebi has also decided to emerge
with a fresh consultation paper on Investment Advisor so as to segregate
advisory and the role of a distributor.
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