MFs welcome SEBI move on debt schemes

MUMBAI: The Securities and Exchange Board of India on Monday prohibited fund houses from suggesting indicative portfolios and indicative yields on their debt schemes.

The regulator also said the tenure of debt securities in portfolio should be the same as the maturity of schemes.

Fund houses have been asked to abstain from using the term 'liquid plus', as this could be wrongly perceived by investors as schemes with more liquidity.

"We welcome the Sebi move, the value will go to the retail investors...the challenge which some of the mutual fund houses faced in September and October last year to a large extent will be addressed on duration of portfolios," said UTI Mutual Fund Chief Marketing Officer Jaideep Bhattacharya.

"It���s a step in the right direction... which should have come earlier itself...liquid schemes should always have high liquidity as a proportion of assets," said Ritesh Jain, Head-Fixed Income, CanRobecco.