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Sebi invites suggestions from stakeholders on ease of doing business for mutual funds
To promote the ease of doing business, SEBI sought comments from the public on Oct 4 last year on various regulations including mutual fund Regulations. The comments received from the public were later forwarded to the working group for consideration in its final recommendation.
The capital markets regulator Securities Exchange Board of India (Sebi) has released a consultation paper on ease of doing business initiatives for mutual funds.
The key objective of this paper is to seek comments and suggestions from public on the proposals regarding ease of doing business initiatives for mutual funds.
To promote the ease of doing business, SEBI sought comments from the public on Oct 4 last year on various regulations including mutual fund Regulations.
The comments received from the public were later forwarded to the working group (WG) for consideration in its final recommendation.
Following this, the WG undertook a comprehensive review of various processes and guidelines applicable to the mutual funds and has provided its interim recommendations on the following three issues.
1. Appointment of a single fund manager for domestic and overseas funds
2. Relaxation of nomination requirement for joint holders
3. Streamlining of prudential norms for passive schemes with respect to exposure to a single issuer within AMC’s group companies
Now the consultation paper provides details of the recommendations of the working group and seek suggestions of the public on the same.
How to send the comments
The comments and suggestions are meant to be submitted by any of the modes latest by March 15, 2024.
A. Online through web-based form: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes
B. Email to eodbmf_comments@sebi.gov.in
C. Through post to the following recipient:
Lakshaya Chawla, DGM
Investment Management Department
Securities and Exchange Board of India,
SEBI Bhavan, C4-A, G-Block,
Bandra Kurla Complex, Bandra (East),
Mumbai -400051
Recommendations by the working group
These are the recommendations made by the SEBI's working group
1. The current requirement with respect to mandatory appointment of dedicated fund managers for commodity and overseas investments may be made optional, subject to this: AMCs will ensure competency of the fund manager they choose to appoint and satisfy themselves that the fund manager has adequate expertise and experience required for such investments in commodities and overseas securities.
The Board of the AMCs are also supposed to be responsible for ensuring compliance and reporting regarding the same to trustees, on a periodic basis.
2. The requirement of Nomination may be made optional in case of jointly held folios
3. Equity oriented ETFs and index funds, based on widely tracked and non-bespoke Indices, may be excluded from the requirement of investment limit of 25 per cent in group companies of sponsors so that investments may be made in accordance with the weightage of the constituents of the underlying index avoiding any unintended tracking error.
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Business NewsMutual FundsSebi invites suggestions from stakeholders on ease of doing business for mutual funds
First Published:24 Feb 2024, 04:48 PM IST
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