The Securities and Exchange Board of India (Sebi) on Monday approved the introduction of a new asset class, designed to offer greater flexibility to fund managers and target investors with a higher risk appetite. The markets regulator also cleared the liberalised Mutual Funds Lite (MF Lite) framework, aimed at fund houses that solely launch passively managed schemes. Though the Sebi board, which includes representatives from the finance ministry and the Reserve Bank of India, during its meeting on Monday did not take up allegations of “conflict of interest” levelled against Chairperson Madhabi Puri Buch by the main Opposition Congress, it did discuss discontent among employees and the withdrawal of a press release concerning the matter, sources said. In another significant move, the board reduced the timeframe for rights issues from the current 317 working days to just 23. This is intended to allow listed companies to raise capital more quickly from their existing shareholders.