The Association of Mutual Funds in India plans to work with capital market regulator SEBI to deepen debt markets to improve investor protection and participation.

Last October, SEBI in consultation with AMFI and Mutual Fund Advisory Committee had proposed calibrated reduction in limits for investment in unlisted securities of mutual fund schemes.

Listing guidelines were suitably modified to facilitate listing for instruments such as commercial paper which hitherto were always unlisted.

Global experience has proved that listing on exchange platform create better dissemination of information resulting in efficient price discovery and improve liquidity in secondary markets.

Following this, issuers were encouraged to seek listing of securities on exchanges for prior issuances.

NS Venkatesh, Chief Executive, AMFI, said “all the steps were taken to ensure that every market participant had access to relevant information which will enable fair price discovery and improve secondary market liquidity.’’

Mutual funds have carried out business as usual including meeting redemptions in current challenging times as markets are open and functioning, he said.

Day-to-day redemptions

All mutual funds except Franklin Templeton have managed to meet day-to-day redemptions through orderly liquidation of portfolios due to acceptability of underlying securities in secondary market and measures taken by SEBI to deepen debt market, said AMFI.