Motilal Oswal AMC pauses fresh inflows into Nifty Microcap 250 index fund after SEBI talks

SEBI

Motilal Oswal Asset Management Company (MOAMC) has paused fresh inflows into its Motilal Oswal Nifty Microcap 250 Index Fund following discussions with the Securities and Exchange Board of India (SEBI) on mutual fund categorisation norms .

The pause, effective January 8, comes as “micro-cap” is not recognised as a separate category under SEBI’s current mutual fund classification framework. The scheme tracks the Nifty Microcap 250 Index, which comprises 250 stocks beyond the top 500 companies by market capitalisation .

MOAMC said it is in discussions with the market regulator on the way forward. In the interim, the fund house has stopped accepting all fresh subscriptions and transactions, including lump-sum investments, systematic investment plans (SIPs), systematic transfer plans (STPs), and other modes

Any transactions received after 3:00 pm on January 8 will not be processed and will be refunded as per applicable procedures, the asset manager said .

Existing investors in the scheme will not be impacted by the move, according to the fund house. MOAMC said the fund will continue to be managed in line with its stated investment approach, consistent with how it has been managed since inception .

The fund house added that further communication will follow once discussions with SEBI are concluded .