Which mid/small cap stocks will rise after Sebi advised multicap mutual funds to have 25% stakes in all three L/M/S cap?

Most Mutual Funds may fund a way around these new guidelines. Not that they do not respect them, but because they may be hard constrained; besides SEBI has also clarified that funds can merge schemes or an AMC can exit a schema category.

For eg, Kotak Standard Multicap has only 1% exposure to small caps; expecting them to buy 24% more would be incorrect.

Hence do not expect much to come out of these guidelines in terms of net effect. Go for a strong stock portfolio based on first principles. Hire an advisor who can give you that honest equity investment advisory service[1].

I will still maintain that small caps are a minefield and it is easy for a not so alert investor to lose money. That might be true even for a savvy investor because the promoters in small caps may not be trustworthy (there are some good exceptions though).

Footnotes[1] http://jamawealth.com