SEBI wants costs raised for MFs,brokers

The Securities and Exchange Board of India (SEBI) has recommended raising capital requirements sharply for market intermediaries such as mutual funds,brokers and investment bankers.

A panel of the markets regulator has proposed to raise the minimum net worth requirement of asset management companies (AMCs),or mutual funds,by five times to Rs 500 million ($11 million),it said late on Thursday.

It also proposed to double the base net worth,for investment bankers to Rs 100 million and for custodians to Rs 1 billion,it said.

The watchdog also suggested corporate brokers should have a net worth of Rs 10 million by end-2010 and Rs 30 million by 2012.