Keeping in mind the lockdown imposed to tackle coronavirus, SEBI has given one month extension to AMCs to comply with disclosure norms and new investment norms on liquid funds.
Among the key relaxations are the requirement to disclose half yearly unaudited financial results is now extended to May 31, 2020 from April 30, 2010 and yearly disclosure of investor complaints to June 30, 2020. Similarly, the deadline to disclose commission paid to MF distributors has been extended to May 10, 2020.
Also, new investments norms related to liquid funds such as keeping 20% of liquid fund assets in liquid assets, revision in sectoral level cap and amortization based on valuation have now been extended to May 1, 2020. Mumbai distributor, Amit Singh of Investica said that considering the liquidity crunch in the debt market, SEBI's move will give relief to debt funds investors and will not add to existing volatility.
In addition, fund houses can now launch their NFOs within a year of getting SEBI approval.
Finally, the market regulator has clarified that AMCs need not temporarily require maintaining call recording of deals subject to checks and balances deployed by them. SEBI said, “In light of difficulties expressed by AMCs, the access control presently exercised in the AMC’s dealing room including call recording of deals is temporarily relaxed subject to checks and balances including electronic confirmation by way of email or other system having audit trail are in place.”
