AMFI hails Sebi’s move to ease IPO, MF and FPI regulations

Association of Mutual Funds in India (AMFI) on Saturday hailed the regulatory changes introduced by the Securities and Exchange Board of India (Sebi), simplifying norms for IPO and foreign portfolio investors.Sebi, in its recent board meeting, decided to revise the minimum public shareholding (MPS) norms for large companies planning initial public offerings (IPOs).

“We welcome SEBI’s progressive and well-calibrated reforms announced at its recent Board Meeting. The new incentive structures to expand mutual fund penetration beyond the top 30 cities and among women investors align closely with AMFI’s financial inclusion objectives,” said Venkat N Chalasani, Chief Executive, AMFI.

The reduction in the maximum exit load from 5 per cent to 3 per cent further reinforces SEBI’s commitment to investor protection and transparency.

The reclassification of REITs as ‘equity’ for mutual fund investments is also a timely step that will enhance diversification opportunities and support the growth of real estate as an investible asset class, Chalasani added.

Taken together, these initiatives will broaden investor participation, strengthen the long-term health of the mutual fund industry, and strike a thoughtful balance between regulatory rigour, investor protection, and ease of doing business, he said further.