Mumbai: The Securities and Exchange Board of India (Sebi) on Monday set a 24 August deadline for mutual funds to make exit loads equal for all classes of investors. An exit load is the fee a fund charges when an investor exits a fund prematurely.
“The parity among all classes of unit holders in terms of charging exit load shall be made applicable at the portfolio level,” a Sebi circular said. This means fund houses cannot charge differential exit loads for different plans within the same scheme such as retail plan, institutional plan, and super-institutional plans, among others.
Mint had reported last week that some mutual funds were planning to roll back recent hikes in their exit load after Sebi’s order to make exit loads equal for different classes of investors under the same scheme.