The Securities and Exchange Board of India (SEBI) is considering to come up with Asian Region Fund Passport or ARFP which means that Indian mutual fund schemes will be allowed to be sold in Asian countries without regulatory approvals, according to the sources in the industry.
Mutual Fund ‘Passporting’ or fund passport, once implemented will allow cross-border marketing of managed funds across participating economies in the Asian region.
The capital market regulator is working with International Organization of Securities Commission or IOSCO and with the regulators of other Asian countries for implementing this, sources said.
If implemented, domestic mutual fund schemes will be allowed to sell mutual fund schemes in Asian countries without the fund house having to register separately with the regulator of that country. Conversely, schemes of these countries will be allowed to be sold in India.
