<p>Sebi chief Ajay Tyagi on Tuesday said the markets regulator is not forcing anyone to invest in small-caps and investment should always be in the interest of investors amid new portfolio allocation rules for multi-cap mutual fund schemes.</p>.<p>He further said multi-cap mutual fund schemes should be "true to label".</p>.<p>The regulator, earlier this month, directed multi-cap funds to invest at least 25 per cent of their corpuses each in large-cap stocks, mid-caps and small-cap stocks.</p>.<p>This raised concerns among the mutual fund industry and fund managers estimated that the move would result into Rs 30,000-40,000 crore moving out of large-cap to mid-cap and small-cap companies.</p>.<p>Earlier, there was no restriction on the exposure such funds needed to make in large, mid and small-cap stocks and therefore majority of the multi-cap funds have run with a large-cap bias.</p>.<p>"Multi-cap form should be as per their name. We are not forcing anyone to invest in these caps (small-cap, mid-cap) and investment should be in the interest of investors," Tyagi said while addressing industry body Amfi's 25th annual general meeting.</p>.<p>According to him, improper categorization of mutual fund schemes will lead to confusion and mis-selling.</p>.<p>"Schemes not true to label will create confusion in the minds of investors," Tyagi said.</p>.<p>He further said Sebi has received representations from the Association of Mutual Funds in India (Amfi) on the multi-cap schemes and the regulator will take a call on the suggestions given by the industry body.</p>.<p>Tyagi said debt mutual funds must remember that there is a difference between investing and lending.</p>.<p>Mutual funds are not banks and should not attempt to behave like one, and they must protect the interest of unitholders, he added.</p>.<p>"Debt mutual funds are not banks and should not behave like one," Tyagi said.</p>.<p>With regard to market, Tyagi said uncertainty in markets continue to prevail although steps by RBI and Sebi have helped reduce the volatility.</p>
<p>Sebi chief Ajay Tyagi on Tuesday said the markets regulator is not forcing anyone to invest in small-caps and investment should always be in the interest of investors amid new portfolio allocation rules for multi-cap mutual fund schemes.</p>.<p>He further said multi-cap mutual fund schemes should be "true to label".</p>.<p>The regulator, earlier this month, directed multi-cap funds to invest at least 25 per cent of their corpuses each in large-cap stocks, mid-caps and small-cap stocks.</p>.<p>This raised concerns among the mutual fund industry and fund managers estimated that the move would result into Rs 30,000-40,000 crore moving out of large-cap to mid-cap and small-cap companies.</p>.<p>Earlier, there was no restriction on the exposure such funds needed to make in large, mid and small-cap stocks and therefore majority of the multi-cap funds have run with a large-cap bias.</p>.<p>"Multi-cap form should be as per their name. We are not forcing anyone to invest in these caps (small-cap, mid-cap) and investment should be in the interest of investors," Tyagi said while addressing industry body Amfi's 25th annual general meeting.</p>.<p>According to him, improper categorization of mutual fund schemes will lead to confusion and mis-selling.</p>.<p>"Schemes not true to label will create confusion in the minds of investors," Tyagi said.</p>.<p>He further said Sebi has received representations from the Association of Mutual Funds in India (Amfi) on the multi-cap schemes and the regulator will take a call on the suggestions given by the industry body.</p>.<p>Tyagi said debt mutual funds must remember that there is a difference between investing and lending.</p>.<p>Mutual funds are not banks and should not attempt to behave like one, and they must protect the interest of unitholders, he added.</p>.<p>"Debt mutual funds are not banks and should not behave like one," Tyagi said.</p>.<p>With regard to market, Tyagi said uncertainty in markets continue to prevail although steps by RBI and Sebi have helped reduce the volatility.</p>