The Securities and Exchange Board of India (SEBI) will increase surveillance of mutual fund investments in corporate debt, its Chairman UK Sinha said on Tuesday and called for the industry to be more careful with investments and procedures.
UK Sinha's comments come amid growing worries about corporate debt investments by asset managers after a unit of JP Morgan in India suffered significant mark-to-market losses in late August when auto-parts maker Amtek Auto Ltd's debt was downgraded by rating agencies.
The regulator, at an event organised by the Federation of Indian Chambers of Commerce & Industry (FICCI), added SEBI would also look at whether there were any conflicts of interest in the ratings process.
Sinha also noted SEBI would come out with a new set of regulations for the distribution of mutual fund products, "hopefully" in a couple months.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
