Following the SEBI diktat on multi-cap schemes of mutual funds, small- and mid-cap stocks soared though the broader market remained bearish.
Despite SEBI’s clarification that it is open for consultation on its new guidelines, investors rushed to buy small- and mid-cap stocks in the expectation that fund houses will dilute their holdings in large-cap stocks and diversify their investments to meet the new norms.
The BSE Small-Cap Index zoomed 520 points to 15,078 while the BSE Mid-Cap was up 214 points at 14,873 on Monday. The Nifty Mid-Cap 100 and the Nifty Small Cap-100 were up 2.6 per cent and 5.5 per cent, respectively
Last Friday, SEBI had mandated that multi-cap schemes should invest 25 per cent each in large-, mid- and small-cap stocks besides increasing the minimum equity investment of these schemes to 75 per cent of the AUM from 65 per cent. Earlier, there was no such limits