AMCs stocks fall after SEBI asks to put in place framework to safeguard investors amid surging inflow

Nippon Life India Asset Management Ltd. | Finance - Asset Management | BFSI | BSE: 540767 | NSE: NAM-INDIA

01 Mar 2024 Evaluate

Stocks related to the asset management companies (AMCs) fell on the BSE, after capital markets regulator -- the Securities and Exchange Board of India (SEBI) has asked mutual fund houses to put in place a framework to safeguard investors, who invested in smallcap and midcap schemes, amid a ‘froth building up’ in these categories. Also, the regulator has suggested steps such as restrictions on inflows in these segments, portfolio rebalancing, and laying guidelines to safeguard investors from the first-mover advantage of redeeming investors. This came in the backdrop of strong flow in the small and midcap schemes of mutual funds over the last few quarters.

Nippon Life India Asset Management is currently trading at Rs. 510.00, down by 5.45 points or 1.06% from its previous closing of Rs. 515.45 on the BSE.

Aditya Birla Sun Life AMC is currently trading at Rs. 524.00, down by 2.05 points or 0.39% from its previous closing of Rs. 526.05 on the BSE.

HDFC Asset Management Company is currently trading at Rs. 3765.15, down by 4.45 points or 0.12% from its previous closing of Rs. 3769.60 on the BSE.

In a communication to Association of Mutual Funds in India (AMFI), SEBI asked the industry body to inform trustees of all the mutual fund houses to frame a policy to protect the interest of investors of smallcap and midcap schemes. The regulator said ‘In the context of the froth building up in the small and mid-cap segments of the market and the continuing flows in the small and mid-cap schemes of mutual funds, trustees, in consultation with unitholder protection committees of the AMCs shall ensure that a policy is put in place to protect the interest of all investors’.

The market regulator said that ''appropriate'' and ''proactive measures'' should be taken by Asset Management Companies (AMCs) and fund managers to protect investors. However, such a framework should not be restricted to moderating inflows and rebalancing of portfolios. Additionally, the new framework should protect investors from the first-mover advantage of redeeming investors. Further, fund houses are required to disclose the new policy on their website within 21 days.

During the three months ended December 2023, the mid-cap category garnered net inflows of Rs 6,468 crore, marking it the 12th-consecutive quarter of inflow. Besides, the small-cap category experienced a net inflow of Rs 12,052 crore in the third quarter of fiscal 2023-24, which was the highest the category has witnessed ever over a quarter. This was also the 11th-consecutive quarter in which the category witnessed net inflows. Strong, consistent net inflows and favourable market conditions propped up the assets under management for these segments.

Nippon Life India As Share Price

1187.05 21.30 (1.83%)

19-Jun-2026 16:59 View Price Chart

Peers

Company Name	CMP
ICICI Prud.Asset Man	3445.15
HDFC Asset Mngt. Co	2717.25
Nippon Life India As	1187.05
Aditya Birla Sun AMC	1180.80
UTI Asset Management	949.55
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