Sebi’s news rules will not be a very big challenge for Invesco Mutual Fund, said Taher Badshah, CIO of equities at the firm on Tuesday, while adding that the company’s multicap fund is already more-or-less in-line with the market regulator’s latest guidelines.

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Speaking to CNBC-TV18, Badshah said, “I would not think that managers of multicap funds would quickly make the moves in order to comply or get on the course of complying with the new Securities and Exchange Board of India (SEBI) regulations. We still don’t know what the final contours will probably look like,” he said.

Talking about the impact of the new rules on fund managers, he said, “Managers might adopt the few options that they have in front of them. That is something which I am not too sure everybody is deliberated and has made up their minds on. So it may not necessarily translate into the way the numbers have been put forth in terms of the buying which can occur in the midcap and the smallcap and maybe even the selling which can occur in the largecaps.”

On Invesco’s plans vis-à-vis the Sebi’s new rules, Badshah said we are almost in-line with the guidelines.

“We have been very well placed with respect to the due regulation, which has been announced by SEBI. So we are almost in-line with the new recommendation, which have been prescribed. So we don’t have to do anything in this regard,” he said.

Invesco has never been averse to owning midcap and smallcap, Badshah added.

“We approach the market in a way that we are willing to look at opportunities in all possible baskets and that is how our investment process internally has structured as well. So to that extent we are happy to own businesses which we think we like and where we have our investment premise clearly defined at the outsets itself. That is the reason post 2018 when the re-categorisation took place, we decided to configure our multicap fund to say that look we want to run it in the true spirit of a multicap that itself represents good amount of each section of the market, the largecap, midcap and the smallcap varieties.”

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