Sebi Chairman urges caution for mutual funds investing in micro-cap companies

Sebi chairman Tuhin Kanta Pandey cautioned mutual funds about investing in micro-cap companies due to liquidity constraints and volatility. He also addressed concerns about fraudulent redemptions and urged AMCs to enhance cyber resilience and data protection. Sebi is considering incentivizing distributors for investments from first-time investors beyond the top 30 cities to promote financial inclusion.