New MF classification norms have taken away some ‘creativity’: Sundeep Sikka

Sundeep Sikka, ED & CEO, Reliance Nippon Life Asset Management Co Ltd, told Mint that Sebi’s new fund classification norms have led to simplification. “But I believe it could have been better. It has taken away the biggest thing – the creativity of the industry. Today, all the stocks are categorized based on market caps. For example, if the marketcap of the 250th stock is Rs 6,000 crore and you invest in a Rs 4,000 crore market cap stock and it goes up to Rs 6,000 crore, you are forced to sell it,” he said. “Though Sebi’s new norms are a step in the right direction, it could be relooked at to iron out the issues,” he said.