The Board of Securities and Exchange
Board of India (SEBI) has approved some changes related to the follow-on public
offer of the capital market, including several mutual fund regulations, in
today's meeting. Regulator SEBI has lifted the lock-in ban for promoters'
minimum contribution and issue in the follow-on public offer (FPO). Till now
promoters of mutual funds have to make 20% contribution in the follow-on public
offer. Market regulator SEBI has also added some conditions for this, the first
of which is that the shares of the issuer company have been trading
continuously for the last 3 years and the second thing is that it should have
at least 95% investor compliance clearance.
According to these changes in the
rules of Mutual Fund by SEBI, each scheme of a fund will have different asset
and liability. Now the need to issue physical certificates of units of funds of
mutual funds has also been removed. The maximum limit of exit load of mutual
funds schemes and the timeline of dividend payment issued by them has also been
reduced.
In order to promote innovation in the
mutual fund industry and to make them accessible to more and more investors,
SEBI has decided that even if the sponsors of the fund are not able to fulfil
the criterion of profitability, they will be considered as sponsors provided
they have AMC 100 crore to be contributed. He will have to maintain this net
worth of AMC until he earns a profit for 5 consecutive years.
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