SEBI plans to conduct a forensic audit of all 44 mutual funds to examine their due diligence practices regarding investments in illiquid securities and risk management. FPIs continued their selling streak in Indian equities by withdrawing Rs. 9,600 crore in February due to higher valuations of domestic stocks. HDFC AMC launched its first AIF product targeting investments in VC and PE funds, while Aditya Birla Sun Life MF launched a new index fund tracking the CRISIL IBX SDL Jun 2032 Index.

1. Weekly
News
13th Feb. 2023
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2. Snapshot
SEBI plans forensic audit of all
mutual funds
FPIs' exodus continues;
take out Rs 9,600 cr. from
equities in Feb
New Schemes
launched
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SEBI Registered Investment Adviser (INA200006628)
Weekly Market News
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Other News

3. Weekly Market News
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SEBI Registered Investment Adviser (INA200006628)
Index % Change
Nifty 50 0.01%
Nifty Midcap 150 2.03%
Nifty Small Cap 250 0.90%
Nifty IT 0.89%
Nifty Bank 0.14%
Nasdaq 100 -2.14%
Dow Jones -0.17%
S&P 500 -1.11%

4. SEBI to begin forensic audit of mutual funds
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SEBI Registered Investment Adviser (INA200006628)
 Securities and Exchange Board of India (SEBI) is planning a forensic audit of all 44
mutual funds in the wake of the unfortunate events at Franklin Templeton India
Mutual Fund and Axis Mutual Fund in the last 2-3 years.
 The audit is expected to focus on MFs’ due diligence with respect to investments in
illiquid securities, management of various risks including concentration,
downgrades, early warning signals and liquidity issues of the securities in the
portfolio.
 Over the past decade, there has been a five-fold increase in the size of the mutual
fund industry. The assets under management (AUM) has surged from Rs 7.93 lakh
crore in November 2012 to Rs 39.89 lakh crore in December 2022.
 The market regulator has also proposed AMCs to set up a “Unit Holder Protection
Committee” across all products and services. This committee will independently
review AMC decision from unit-holders’ interest perspective

5. FPIs withdrew a net sum of Rs 9,672 crore from equities in February 1-10.
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SEBI Registered Investment Adviser (INA200006628)
 Foreign investors continue to desert Indian stock markets as they pulled out over Rs
9,600 crore this month so far on costlier valuation of domestic equities compared to
other emerging markets.
 The outflow comes following a net withdrawal of Rs 28,852 crore by Foreign Portfolio
Investors (FPIs) in January. This was also the worst outflow in the last seven months,
data with the depositories showed.
 One of the prominent reasons for this net outflow is higher valuation of Indian equities
as against some of the other comparable markets. In addition, aggressive opening of
China after series of lockdowns drew foreign investors towards its shores. Following the
rigorous lockdowns, Chinese markets declined sharply, making them more appealing
from a value standpoint.

6. New Scheme Launched by HDFC AMC
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SEBI Registered Investment Adviser (INA200006628)
 HDFC Asset Management Co. (AMC) has launched its first
alternative investment fund (AIF) product, marking its entry
into alternative assets space.
 HDFC Select AIF FOF – I is a category II AIF (fund of funds)
that will invest in venture capital (VC) and private equity (PE)
AIFs, roughly split equally between the two, with no pre-
defined sector focus.
 As per Sebi regulations, the minimum commitment amount in
an AIF is Rs. 1 crore. With the aim of making the scheme
accessible to more investors, the AMC will take this
commitment amount over a period of five years. The FOF is
currently open for subscription. The FOF is expecting its first
close before March-end.
Source - Mint

7. New Scheme Launched by Aditya Birla Sun Life MF
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SEBI Registered Investment Adviser (INA200006628)
 Aditya Birla Sun Life CRISIL IBX SDL Jun 2032 Index Fund
 The investment objective of the Scheme is to generate returns corresponding to the
total returns of the securities as represented by the CRISIL IBX SDL Index – June
2032 before expenses, subject to tracking errors..
 Fund Offer is open for subscription from 06-Feb-2023 and will close for subscription
on 13-Feb-2023.

8. Other News
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SEBI Registered Investment Adviser (INA200006628)
 The RBI raised the repo rate by 25 basis points (bps) on Wednesday, This makes the
current repo rate 6.50% (from the 6.25% that it was earlier). In its sixth straight rate hike
in a row that took the total to 250 bps in the current fiscal year
 Adani hires US legal powerhouse Wachtell in short-seller battle
 MSCI index’s rejig for Adani stocks triggers fresh selloff

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