Listen to this article
SEBI has allowed fund houses to launch passive ELSS provided they stop taking fresh inflows in existing actively managed ELSS.
In a note sent to fund houses, AMFI said, “SEBI has now been decided that mutual funds having an existing actively managed open ended ELSS may launch a passively managed open ended ELSS, after stopping fresh inflows/ subscriptions in the existing ELSS.”
Further, SEBI clarified that fund houses will have to merge their closed for subscription active ELSS with passive ELSS after three years, said a senior MF official. The new offering will be passive ELSS after three years, he added.
Earlier, SEBI allowed fund houses to launch either an active ELSS scheme or a passive ELSS scheme. The passive ELSS scheme tracks an index comprising of shares of top 250 companies, said SEBI.
Currently, the industry has only one passively managed ELSS launched recently by IIFL MF.
