Sebi allows mutual funds to segregate distressed assets to protect returns

In a series of reforms, capital market regulator Sebi's board on Wednesday cleared easing of norms to kick-start startup listings and allowed mutual funds to segregate distressed assets to safeguard investment returns.

At a meeting held here, the Sebi board also approved a proposal to expand the offer-for-sale mechanism for reduction of a stake in listed companies and relaxed clubbing of investment limit norms for well-regulated foreign investors.

The expansion of offer-for sale scheme will include all companies with Rs 1,000-crore and above market-capitalisation.