SEBI has tweaked mutual fund regulations. The new rules will replace parts of SEBI (Mutual Funds) Regulations, 1996 and several circulars issued since then.
Here are some of the key changes to the MF regulations:
- If MF schemes are bought and sold (merger and acquisition), fund houses will have to give an exit option of 30 days to investors
- In addition, fund houses will have to communicate about such a change to unitholders through email, phone or physical letter
- AMC employees can now participate in private placement of equity and invest in discretionary PMS
- Date of inception is considered to be date at which units are allocated to investors
- The term "Key Personnel" will now be officially used for the top officials of AMCs like CEO, CIO AND COO. Earlier, they were referred as "Key Managerial Personnel"
- Trustees will have to file details of their transaction (if any) in securities market within a month from the end of respective quarter. Such a transaction has to exceed Rs.5 lakh
- AMCs now have five more days to issue monthly consolidated account statement. The document has to be issued before 15th of the succeeding month. Earlier, the last day used to be 10th of the succeeding month
- Half yearly CAS needs to be issued on or before 21st of the succeeding month
