Listen to this article
SEBI has extended the timeline for implementation of the Rs. 25 crore threshold for direct ETF transactions.
To enhance liquidity in ETFs on stock exchange platforms, the Regulator had introduced a threshold of greater than Rs. 25 crore for direct trade with AMCs through circular dated May 23, 2022. This threshold doesn’t apply to market makers.
AMCs were asked not to allow direct ETF transactions of less than Rs. 25 crore from July 1, 2022. However, acknowledging the challenges with respect to its implementation, the regulator had extended its implementation to November 1, 2022.
On similar grounds, SEBI has granted the second extension and the implementation will now be applicable from May 1, 2023.
The latest circular read, “Based on further feedback received from stakeholders, it has been decided that the clause 2(IV)(A) of the circular shall be applicable with effect from May 01, 2023.”
