SEBI extends ASBA to MFs, reduces NFO period to 15 days
Published on Mon, Mar 15, 2010 at 21:47 | Source : CNBC-TV18
Updated at Tue, Mar 16, 2010 at 15:01
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SEBI extends ASBA to MFs, reduces NFO period to 15 days
The Securities and Exchange Board of India (SEBI) has brought in sweeping changes for the mutual fund industry. These include, for starters, a cut in the new fund offer period to 15 days and tighter corporate governance norms.
The Securities and Exchange Board of India (SEBI) has brought in sweeping changes for the mutual fund industry. These include, for starters, a cut in the new fund offer period to 15 days and tighter corporate governance norms, reports CNBC-TV18's Sajeet Manghat.
The market regulator has extended Application Supported by Blocked Amount (ASBA) to mutual funds. There will be a compulsory ASBA facility for all NFOs from July 1.
It has also reduced the new fund offer period for MFs to 15 days. The limit for time allotment of units for open-ended schemes, except ELSS, has been reduced to 15 days.
The new fund offer period for equity-linked saving schemes (ELSS) continues to be governed by government guidelines. NFO proceeds can now be used only on or after the closure of NFO period.
Unit premium reserve will henceforth be not available for dividend distribution.
Asset management companies will have to disclose policies and procedures for exercising voting rights in companies.
On fund-of-funds, SEBI says AMCs cannot enter into revenue sharing agreements with offshore funds.
