Jefferies calls smallcap, midcap selloff as healthy correction, not a larger meltdown. The correction gained significance after the Association of Mutual Funds in India (AMFI) recently issued an advisory to its members urging them to moderate inflows to small and midcap schemes. Read more. The only issue in the market is the high valuations, especially in names where there was not sufficient liquidity or where the fundamentals were not supportive.