Sebi-mandated stress tests on small, midcaps serve a purpose despite limitations
₹64,000 crore out of a total inflow of ₹1.6 trillion. To mitigate risk, some fund houses have opted to restrict inflows into their schemes.
Continuous monitoring and adaptation by regulators and industry stakeholders are essential to effectively manage risks and safeguard investor assets. Despite efforts to instil investor confidence over the years, any adverse incident could undermine faith in the sector.
After all the regulator did sound this out upfront. “I am not satisfied with the data right now.
More work is needed. It has to be a combination of looking at stress testing numbers and also figuring out what the industry will do if certain thresholds are breached," the chairperson of Sebi had said at an industry conference in January 2024.
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