SEBI has done away with the requirement of appointing fund managers to manage commodity funds like gold and silver ETFs.
However, the regulator has clarified that if fund houses wish to appoint a fund manager to manage their commodity funds, the fund manager should have relevant expertise and experience. The board of the fund house will be responsible to ensure the fund manager is well qualified for the job.
In another move, SEBI has relaxed the requirement of appointing a fund manager in fund of funds investing overseas.
Earlier, the SEBI working group found that appointment of two fund managers in FoFs investing overseas leads to additional cost to the AMCs.
Additionally, transactions done by fund managers in overseas markets are limited, so a separate fund manager may not be required solely for overseas investment. Further, AMCs already hire research analysts at each security/ sector level.
