Indian regulator bars Tycoon Vijay Mallya from securities trading for 3 years
The ban, announced on Friday, also includes a freeze on Mallya’s existing securities holdings, including units of mutual funds.
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The ban, announced on Friday, also includes a freeze on Mallya’s existing securities holdings, including units of mutual funds.
SEBI has stated that from April 1st, investors with an 'on-hold' KYC status will not be able to carry out any transactions in mutual funds. This includes investing in new mutual funds or redeeming units from existing mutual funds.
The unprecedented influx of investments into small and mid-cap funds over the past year has contributed to the escalation of stock prices within these segments, amplifying the risk of a substantial market correction in the event of adverse market conditions.
In response to inquiries, an SBI spokesperson affirmed that the bank is assessing the impact on its AIF portfolio in light of the RBI guidelines and emphasized a commitment to ensuring compliance.
SEBI emphasized that the move is in response to the observed instances where investors notice suspicious activities but lack the necessary tools to promptly address the issue.
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