Measures taken by Sebi to deepen bond markets over the years have allowed normal functioning of markets and Growth of Debt Mutual Funds

Mumbai, May 7, 2020: SEBI over the years have taken number of steps to deepen Indian Securities market and bring it at par with global markets.

Global experience suggests that listing on exchanges create better dissemination of information resulting in finer price discovery and improve liquidity in secondary markets.

SEBI in Oct 2019 in consultation with Association of Mutual Funds in India (AMFI) and post deliberation at Mutual Fund Advisory Committee (MFAC) had proposed calibrated reduction in limits for investment in unlisted securities in Mutual Fund Schemes.

Listing guidelines were suitably modified to facilitate listing for instruments like Commercial Paper which hitherto were always unlisted.

Issuers were encouraged to seek listing of securities on exchanges for prior issuances.

Mr N S Venkatesh, Chief Executive, AMFI said: ‘’All these steps were taken to ensure that every market participant had access to relevant information which will enable fair price discovery and improve secondary market liquidity.’’

‘’Measures taken by SEBI over the years including one in Oct 19 have deepened the Debt markets,’’ Mr Venkatesh said adding: ‘’Mutual Funds have carried out business as usual including meeting redemptions in current challenging times as markets are open and functioning.’’

All Mutual Fund except one has been able to manage day to day redemptions through orderly liquidation of portfolios due to acceptability of underlying securities in secondary market and measures taken by SEBI to deepen debt market.

AMFI will continue to work with SEBI to deepen debt markets to improve investor protection and participation, Mr Venkatesh said.