Sebi removes initial issue fee on MFs

Sebi removes initial issue fee on MFs
PTI
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First Published: Wed, Jan 30 2008. 11 54 PM IST
Updated: Wed, Jan 30 2008. 11 54 PM IST
Mumbai: The country’s stock markets regulator, the Securities and Exchange Board of India (Sebi), on Wednesday decided to bring down the costs associated with mutual fund investments by doing away with the initial issue fee for close-ended schemes.
“This decision of removing initial issue expense will make close-ended mutual fund schemes less expensive for retail investors,” Sebi chairman M. Damodaran said after the regulator’s board meeting.
The Sebi board also cleared the draft proposal for listing of debt securities, ease disclosure norms for existing debt market securities and paved the way for permanent registration of capital market intermediaries.
Replying to questions on introduction of short-selling by institutional investors, Damodaran said: “It would be introduced in the first week of February if not on 1 February.” The regulator had already introduced shot-selling by retail investors, allowing them to sell stocks without owning them.
Damodaran further said that guidelines for real estate investment trusts (REITs) and real estate mutual funds would be taken up at the next board meeting.
Sebi has invited public comments on the draft guidelines for REITs, which would allow people to invest in real estate in an organised manner.
Referring to the issue of reducing cost and time of initial public offerings (IPO), Damodaran said a sub-committee of the primary market advisory committee (PMAC) has gone through various issues and submitted its report, which will be considered by PMAC sometime in February.
Once PMAC firms up its recommendations, it would be considered by Sebi with a view to simplifying procedure to cut time and cost for IPOs, Damodaran added.
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First Published: Wed, Jan 30 2008. 11 54 PM IST