Sebi for fast-track clearance for mutual funds

Sebi for fast-track clearance for mutual funds

Mumbai: The market regulator on Thursday proposed to clear mutual funds products on a fast-track basis.

To begin with, fixed maturity plans with closed ended income schemes can be offered on a fast track basis, the Securities and Exchange Board of India (Sebi) said in a proposal posted on its website seeking public comments.

Under this proposal, a fund house can file a final offer document with the regulator along with compliance certificates and fees.

After the filing, the regulator will confirm the receipt of the documents and the fund house can offer the scheme to investors.

At present, a fund house has to file a draft offer document and the regulator makes observations to modify (if required) or include disclosure. After that, the fund house files revised documents and Sebi communicates to it about the launch of fund.

The proposal is in line with international stipulations where not many approvals are required and fund houses file the final document and goes ahead with the scheme.