FE Report (January 12, 2011)
The Securities and Exchange Commission (SEC) Tuesday relaxed the highest limit of mutual fund's (MF's) investment in the shares of a single company up to March 31, officials said.
The SEC lifted the restriction on the highest amount of MF's investment in shares of a single industry, debenture and other securities.
The SEC took the decision in a move to increase the purchasing power of the MFs so that the stock market could overcome the recent crisis.
As per law, an MF is not allowed to invest more than ten per cent of its total scheme size in shares of a single company.
The law also state that no MF is allowed to invest more than 25 per cent of the size of its all schemes in the shares of a single industry, debenture and other securities.
The Securities and Exchange Commission (SEC) Tuesday relaxed the highest limit of mutual fund's (MF's) investment in the shares of a single company up to March 31, officials said.
The SEC lifted the restriction on the highest amount of MF's investment in shares of a single industry, debenture and other securities.
The SEC took the decision in a move to increase the purchasing power of the MFs so that the stock market could overcome the recent crisis.
As per law, an MF is not allowed to invest more than ten per cent of its total scheme size in shares of a single company.
The law also state that no MF is allowed to invest more than 25 per cent of the size of its all schemes in the shares of a single industry, debenture and other securities.
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