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Mutual funds now have the option to launch ELSS schemes with a passive structure.
According to a circular released by SEBI, fund houses can now launch either an active ELSS scheme or a passive ELSS scheme. The passive ELSS scheme should be based on an index comprising of shares of top 250 companies, the regulator stated.
'AMC can contribute initial corpus for ETF unit creation'
While launching an NFO for ETFs, AMCs can decide to contribute the initial fund for unit creation itself rather than collecting from investors. Post the unit creation, the AMC can transfer the units to market makers or other investors.
Consequently, if the AMC decides to collect funds from investors for initial unit creation, the minimum subscription amount at the time of NFO should be Rs. 10 crore for debt ETFs and Rs. 5 crore for equity ETFs.
The minimum amount remains the same for equity and debt index funds.
