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No proposal to Sebi to launch new benchmark index: Amfi

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Mutual fund trade physique Amfi on Thursday mentioned it has not despatched any proposal to Sebi for launching a brand new benchmark index or capping any inventory within the index.

It additional mentioned the trade will proceed to stick to Sebi’ steerage on the capping of a single inventory.

Referring to a speculative report in a bit of the media about Amfi/AMCs proposing to Sebi to launch a brand new benchmark index, the trade physique in an announcement clarified that “it has not written to Sebi proposing the launch of new index nor capping any stock in the index”.

Amfi mentioned, every time any mutual fund launches a scheme, the fund home chooses an applicable benchmark index which displays the composition of the scheme’s portfolio.

It additional mentioned undoubtedly there are challenges in efficiency measurement as indices shouldn’t have a cap on inventory, whereas mutual fund schemes have a cap of 10Â per cent on a inventory.

“However this issue needs to be settled between fund houses and index calculating agencies. Globally, index calculating agencies do prepare customised indices which comply with investment restrictions of the fund,” it added.

All the 44 asset administration corporations (AMCs) which might be registered with Sebi, are the members of the Association of Mutual Funds in India (Amfi) .

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