SEBI (Securities and Exchange Board of India) on Friday said that it is mulling changing norms for Mutual Fund (MF) sponsors. The capital markets regulator has issued additional eligibility requirements for MF sponsors.
The regulatory body has sought views from the public on allowing private equities to be MF sponsors. It has sought the views on mutual fund norm changes by January 29.
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Recently, Sebi has allowed mutual funds with active Equity-Linked Savings Schemes (ELSS) to launch passive schemes. This is a move that will provide a cost-effective and tax-saving alternative to individual investors, reported PTI.
Prior to this, mutual funds were allowed to either launch an actively-managed ELSS scheme or a passively-managed one but not in both categories.
In an official statement to asset management companies (AMCs), Sebi said, “Mutual funds having existing actively managed open-ended ELSS scheme may launch passively managed open-ended ELSS schemes after stopping fresh inflows/ subscription to existing actively managed open-ended ELSS scheme”.
