2018 on WebNotes

HDFC AMC IPO (2018)

Tue, 12 May 2026 00:00:00 +0000

The HDFC Asset Management Company Limited IPO of July 2018 was India’s first public listing of a significant asset management company, bringing to the stock market the country’s largest AMC by equity AUM and profitable fee-income franchise. Listed simultaneously on the National Stock Exchange of India and the Bombay Stock Exchange on 6 August 2018, HDFC AMC’s IPO was subscribed approximately 83 times overall and listed at a significant premium to its issue price of Rs 1,100 per share. The offering established an earnings-multiple benchmark for asset-light fund management businesses in India that influenced the subsequent valuations of the UTI AMC IPO of 2020 , the Aditya Birla Sun Life AMC IPO of 2021, and Nippon India AMC’s listing.

IL&FS default impact on debt funds (2018)

Tue, 12 May 2026 00:00:00 +0000

The IL&FS default of September 2018 marked the most consequential single credit event in the Indian debt mutual fund market in the decade preceding the COVID-19 crisis. When Infrastructure Leasing and Financial Services Limited (IL&FS) and its subsidiaries began defaulting on short-term commercial paper and non-convertible debenture obligations in September 2018, mutual funds holding these instruments suffered immediate net asset value (NAV) write-downs, interbank and capital market credit flowed sharply away from non-banking financial companies (NBFCs), and the Securities and Exchange Board of India was compelled to introduce a suite of emergency and structural regulatory measures. The episode revealed deep weaknesses in credit risk assessment, concentration management, and valuation practices within Indian fixed-income mutual funds and accelerated reforms that reshaped the industry for years.

Side-pocketing introduction in Indian mutual funds (2018)

Tue, 12 May 2026 00:00:00 +0000

Side-pocketing, formally termed “segregated portfolio” in Indian regulatory terminology, is a mechanism that allows a mutual fund scheme to separate debt or money market instruments affected by a credit event into a distinct sub-portfolio, ring-fencing the impaired assets from the main portfolio and protecting ongoing investors from dilution by redemption outflows. The mechanism was introduced in India by the Securities and Exchange Board of India through Circular No. SEBI/HO/IMD/DF2/CIR/P/2018/160, issued on 28 December 2018, directly in response to the valuation and fairness challenges exposed by the IL&FS default of September 2018 . Side-pocketing had been debated in the Indian mutual fund industry for several years before the Association of Mutual Funds in India recommended its adoption in the wake of the IL&FS crisis.