Now, fund houses can go ahead with change in fundamental attributes, merger of their schemes, rollover of existing close end funds and conversion of close end scheme to open end schemes if they do not hear from SEBI within 21 days.
In a circular, SEBI said that the application filed by fund houses for scheme merger, change in fundamental attributes and so on should be considered on record if no modification is suggested or no queries are raised by SEBI within 21 working days.
The timeline will also be applicable on applications relating to Regulation 24 (b) of mutual fund rules relating to setting up of new businesses which are not in conflict with existing business by AMCs like offering offshore advisory and PMS business.
The regulator said the move will bring uniformity and lead to ease of doing business.
However, SEBI said it may fail to adhere to the timeline if it raises a question or suggests modifications to the AMC. Further, the application should be complete in an aspects and approval shouldn't require “wider consultation”, SEBI said.
