Home / Money / Did You Know | Sebi goes through every new MF

Clarifications: Once the draft offer document is filed, Sebi gets back with queries or doubts, if any. For instance, if the new MF looks similar to any of its existing schemes, Sebi asks the fund house to justify the proposed scheme. If the MF’s proposed name isn’t in sync with its objective, Sebi asks for clarifications.

21-day deadline: If Sebi doesn’t get in touch with the fund house within 21 days, the fund can go ahead with the launch. If Sebi does get back, the fund house needs to reply soon. Sebi then takes another one to two weeks to revert with more queries, if any. The process continues till the final certificate of approval is issued.

The practice: In practice, even if Sebi doesn’t revert within 21 days, fund houses prefer to wait to hear from it before launching an MF. Sebi is fairly active in raising queries.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Post your comment

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout