Madhu Kela hails multi-cap revamp as 'Bonanza for broader markets' | Exclusive

In a surprise move, market regulator SEBI announced a revamp in the structure of multi-cap funds. Multi-cap funds will need to hold 25% of the portfolio in large, mid and small-cap companies each - making it 75% of equity holdings. Market veteran Madhusudan Kela lauded the move by the market regulator, calling it a 'brilliant step'.

Speaking to ET NOW shortly after the announcement, Kela said that markets will witness a significant re-rating of small and mid-cap companies.

Calling it a 'big event' for small and mid-cap companies, Madhu Kela expects additional buying of around Rs 25,000 crore in the small-cap space itself. He says investors should brace for some correction in large cap stocks, as 'new money' is unlikely to enter the markets.

Kela believes that SEBI's rejig will help in reducing the polarised trade in Indian markets with just 15-20 stocks traded heavily and it will usher in broad-based trading on bourses adding more variety.

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Видео Madhu Kela hails multi-cap revamp as 'Bonanza for broader markets' | Exclusive канала ET NOW