Market regulator SEBI has allowed mutual funds to trade directly on debt platforms of recognised stock exchanges. In a notification issued from Mumbai, SEBI has said that asset management companies appointed by mutual fund houses will be permitted to register themselves under 'proprietary trading members' category of stock exchanges. They will be allowed to carry out trades in the debt segment of these stock exchanges, on behalf of mutual fund houses. SEBI has further laid out certain conditions related to the custodian and sponsor of these mutual funds. SEBI has said that the custodian and the AMC of a mutual fund should not be subsidiaries of each other. Generally, custodians are entities responsible for safe keeping of securities.