The Securities and Exchange Board of India (Sebi) has pulled up the mutual fund (MF) sector for not complying with the ‘20-25’ minimum exposure norm and for misuse of funds meant for investor awareness programmes.
By Sebi norms, any MF scheme is required to have at least 20 investors, with each owning less than 25 per cent of the assets. However, U K Sinha, chairman of Sebi, said on Thursday that several MF schemes were in violation of this norm, with investor concentration in some schemes as high as 98 per cent.