Capital markets regulator Sebi has amended mutual fund rules, which require fund houses to invest in their own schemes depending on the risk level to ensure ‘skin in the game’.
The current rule requires an investment of 1 per cent of the amount raised in a New Fund Offer (NFO) or an amount of `50 lakh, whichever is less. In a notification, Sebi said the asset management companies (AMCs) will have to invest in their own schemes based on its risk level.
“The asset management company shall invest such amounts in such schemes of the mutual fund, based on the risks associated with the schemes, as may be specified by the Board from time to time,” Sebi said.