Not forcing anyone to invest in small-caps: Sebi chief Tyagi

TIL Desk/Business/New Delhi/ Sebi chief Ajay Tyagi on Tuesday said the markets regulator is not forcing anyone to invest in small-caps and investment should always be in the interest of investors amid new portfolio allocation rules for multi-cap mutual fund schemes.

He further said multi-cap mutual fund schemes should be “true to label”. The regulator, earlier this month, directed multi-cap funds to invest at least 25 per cent of their corpuses each in large-cap stocks, mid-caps and small-cap stocks.

This raised concerns among the mutual fund industry and fund managers estimated that the move would result into Rs 30,000-40,000 crore moving out of large-cap to mid-cap and small-cap companies.

Earlier, there was no restriction on the exposure such funds needed to make in large, mid and small-cap stocks and therefore majority of the multi-cap funds have run with a large-cap bias.