Sebi Proposes Liquid Mutual Funds for Adviser Deposits

Sebi proposed allowing investment advisers and research analysts to use liquid mutual funds, with a lien marked for compliance, as a deposit alternative. This measure aims to address practical banking challenges faced by advisers. Public comments on the proposal are invited until May 29.

The Securities and Exchange Board of India (Sebi) announced a proposal to permit investment advisers and research analysts to utilize liquid mutual fund units to fulfill their deposit obligations.

This initiative comes in response to the difficulties advisers face with the current system of bank-held deposits, including inconsistent procedures and delays.

To address these issues, Sebi suggests marking a lien on mutual fund units, providing a more flexible and risk-averse solution for industry professionals.