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Soon, the new asset class which has more flexibility than a regular mutual fund scheme and lower ticket size than PMS will become a reality.
SEBI has introduced a ‘New Asset Class’ (NAC), which falls between mutual funds and PMS.
Under NAC, fund houses can launch multiple categories of schemes like long and short funds and inverse funds.
The minimum investment limit will be Rs.10 lakh, said SEBI.
In another move, SEBI has launched ‘MF-Lite’ regulations for passive funds.
The light touch regulations include relaxed requirements relating to eligibility criteria for sponsors. This would include relaxation in requirements like net worth, track record and profitability, responsibility of trustees, approval process and disclosures.
The regulator aims to promote ease of entry in passive funds and encourage new players with the revised regulations.
SEBI said that the existing AMCs with passive schemes can choose to create a different group entity for passive schemes while having the same sponsor or choose to work in the present structure. The revised framework will be applicable in both scenarios.
