(Bloomberg) -- The record-breaking rally in Indian mid-cap stocks may benefit from regulatory tailwinds, according to CLSA India Pvt. A circular from the market regulator aimed at making mutual fund selection easier for investors proposes that mid- and small-cap funds have at least 65 percent exposure to this category. The suggestion could spur 190 billion rupees ($3 billion) of inflows into mid-cap stocks at the cost of large-cap holdings over the next three months as fund managers rejig their portfolios to comply, CLSA said in a Dec. 1 note.
--With assistance from Ameya Karve
To contact the reporter on this story: Ravil Shirodkar in Mumbai at rshirodkar@bloomberg.net.
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Colin Simpson
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