SEBI reduces timeline for investors to exit schemes that undergo management change to 15 days

SEBI has directed fund houses to give MF investors a 15-day window to take exit call in case of change in control of AMC. Investors need not pay any exit load if they choose to redeem their MF units during this window, clarified SEBI. 

Such a timeline has been reduced from 30 days. Sharing the rationale, SEBI said, “Considering that growth in technological communication has enabled faster dissemination of information to unitholders, request has been received from industry to review the timeline for exit option window period for change in control of AMC.” 

However, if the change in control results in consolidation or merger of schemes, the exit window remains unchanged at not less than 30 days.

The circular will come into effect from September 11, 2023, said SEBI.