Market regulator Securities and Exchange Board of India (Sebi) is keen on bringing out norms with regard to ‘gating’ redemptions and spell out instances when funds can create a ‘side-pocket’ to help investors and fund houses navigate the recent Amtek Auto-like episodes better. The move is also aimed at preventing large-scale exodus of investors from debt schemes that hold papers downgraded below investment grade.
The issue of gating and side-pocketing assumes significance in an increasingly challenging economic environment where ratings downgrades have become fairly common.
On Wednesday, rating agency Crisil downgraded the bank facilities and debt programmes of Jindal Steel and Power (JSPL) to ‘…
Read the full article at: http://www.business-standard.com/article/markets/sebi-mulls-norms-to-help-fund-houses-navigate-debt-defaults-116031000947_1.html