A Balasubramanian, MD & CEO, ABSL AMC, says: “though we are not putting the restrictions in our small and midcap fund and given the fact that we are relatively small compared to others, it is about Rs 5,000-6,000 crores size and at the same time, our portfolio liquidity parameters are much better than some of the other schemes which are large in size. Keeping that in mind, while we have not put any stop, we continue to encourage investors to come only through the SIPs and the longer term 3-5-year time horizons.
What is this stress test? How have AMCs conducted it because we understand that most of the AMCs, including yours, are saying that there is no stress in the portfolio.
A Balasubramanian: The way one has to look at this is, there is an exercise in any case being carried out at regular interval by individual AMCs to check the portfolio construction and how the portfolio risk is being monitored and managed, which will take into account the liquidity as well. The current discussion, which has been there for quite some time in consultation with AMFI committee as well as Sebi, is more of a deep dive given that this segment of the market has been getting more money in the last few years.
And as the market cap increases and the ownership becomes more concentrated,
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