Possible new asset class creation by SEBI

According to its chief Madhabi Puri Buch, Sebi is trying to create a new asset class that will fall between mutual funds and portfolio management services (PMS) and be able to serve high-risk investors.

“Mutual funds are the highly retail investors, then you have in between a PMS and then you have AIF (alternative investment fund) for private equity,” stated the head of Sebi, describing the range of asset classes available to investors.

“We believe there is space for a third asset class in between PMS and mutual funds. Buch stated that Sebi is investigating an entirely new asset class.