SEBI Issues New Rules To Streamline Mutual Fund Schemes
By Team Legistify / 2017-10-08

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Market regulator SEBI today asked mutual funds to categorise all their schemes within five baskets, a move that will weed out the practice of multiple funds being launched on similar themes.The schemes will be broadly classified in five groups – equity, debt, hybrid, solution oriented and other schemes, Securities and Exchange Board of India said in a circular.

SEBI asked mutual funds to ensure that schemes devised under the news norms should not result in duplication of other plans offered by them.Only one scheme per category would be permitted except index funds, exchange traded funds tracking different indices; fund of funds having different underlying schemes; sectoral or thematic funds investing in different themes.

Picture Courtesy- Entrackr

Mutual funds will be required to analyse each of their existing schemes in light of these categories and submit their proposals to SEBI after obtaining due approvals from their trustees as early as possible, but not later than two months. The fund houses will have to carry out the necessary changes in all respects within a maximum period of three months.


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