'Sebi has taken cognisance of NAV drop in Taurus MF schemes'

Markets regulator Sebi has taken cognisance of Taurus Mutual Fund case following a complaint pertaining to drop in the net asset value of certain debt schemes of the fund house, Parliament was informed today.

"Sebi is in receipt of few complaints in this matter. The complaints pertain to drop in net asset value (NAV) of certain debt schemes of Taurus Mutual Fund. Based on the news articles, Sebi has also taken suo-moto cognisance of the matter," Minister of State for Finance Arjun Ram Meghwal said in a written reply to Rajya Sabha.

He was replying to a query, whether government/Sebi has received any complaint regarding dramatic fall in certain debt mutual fund schemes by more than 10 per cent on a single day in February.


The minister said that in such matters, Sebi usually examines non-compliance/violation of mutual fund regulations and necessary action is taken for violations if any.

At present, there is no information suggesting collusion among others things, he added.

To diversify the risks posed by rating downgrades of corporate debt, Sebi has reduced exposure limit of a mutual fund scheme to debt instruments of a single issuer from 15 per cent of NAV to 15 per cent.

Besides, single sector exposure limit was reduced from 30 per cent of NAV to 25 per cent.