SEBI Chairman Tuhin Kanta Pandey speaks during the 30th foundation day celebrations of Association of Mutual Funds in India (AMFI), in Mumbai, on Friday.
Asset management companies (AMCs) should exercise caution while investing in microcap companies, Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey said here on Friday.
“While there is a need to diversify beyond the blue chips, caution should be exercised while investing in microcap or debt papers in bespoke deals. Maintaining proper documentation for such investment decisions ensures transparency and sound due diligence,” Mr. Pandey said while speaking at the 30th anniversary of the Association of Mutual Funds in India (AMFI).
His comment assumes significance as former chairperson Madhabi Puri Buch had flagged that there was froth in microcap companies. Microcap companies are listed companies with a market capitalisation of ₹500 crore to ₹1,000 crore.
Mr. Pandey further underlined that choti SIP, which allows investors to contribute a minimum of ₹250, needed more push and had a good potential. “This sachetisation of investing opens the door for first-time and small-ticket investors to enter the mutual fund space with confidence, “ he said.
“The product is in a pretty nascent stage today and has potential to create a significant impact in the years to come and I think the industry should get together and see how we can. Even if we require certain other tweaks, we must do that and take it to every role,” he said.
Mr. Pandey flagged factors that could undermine investor confidence such as fraudulent redemptions by impersonators and urged AMCs to act promptly on such complaints.
Published – August 22, 2025 08:50 pm IST
