The mutual fund industry may have had a very long wish list but the outcome, as far as provisions for them in the Union Budget are concerned, may be a bit of a downer. A CNBC-TV18 report exclusive to domain-b.com

Considering the longish wish list of the mutual fund industry, the Union budget 2007may have come as a bit of a downer. In fact, there is nothing much for the MF industry to write home about, at best a mixed bag.

While the MF industry has been permitted to launch and operate dedicated infrastructure funds, the dividend distribution tax will hit the bottom line of MF players.

The clause that individuals can now invest in overseas securities through Indian mutual funds, however, ought to infuse large funds to the system, adding to their bottom line

Short selling, settled by delivery and securities lending and borrowing to facilitate delivery by institutions, is to be allowed. The FM has also brought in an enabling mechanism, which will permit Indian companies to unlock a part of their holdings as group companies for meeting their financial requirements by issue of exchangeable bonds.

All in all, a mixed bag.