1. ASBA to MF’s -
SEBI had decided to extend ASBA facility to the investors subscribing to New Fund Offers (NFOs) of mutual fund schemes. It shall co-exist with the current process, wherein cheques/ demand drafts are used as a mode of payment. Mutual Funds shall ensure that adequate arrangements are made by Registrar and Transfer Agents for the implementation of ASBA. Mutual Funds/AMCs shall make all relevant disclosures in this regard in the SAI.
2. Reduction of NFO Period
a. In order to make NFO process efficient, it has been decided to reduce the NFO period to 15 days.
b. However, the NFO period in case of ELSS schemes shall continue to be governed by guidelines issued by GOI
3. Applicability
The Mutual Funds/AMCs have to compulsorily provide ASBA facility to the investors for all NFOs launched on or after July 01, 2010
4. Non availability of Unit Premium Reserve for dividend distribution
Unit Premium Reserve, which is part of the sales price of units that is not attributable to realized gains, cannot be used to pay dividend.
5. Role of Mutual Funds in Corporate Governance of Public Listed Companies
The issue of the role of Mutual Funds in Corporate Governance of listed companies was considered by the Mutual Fund Advisory Committee, mutual funds should play an active role in ensuring better corporate governance of listed companies.
6. Provision of charging of additional management fees by the Asset Management Companies in case of schemes launched on no load basis
AMC shall not collect any additional management fees referred to in Regulation 52(3) of SEBI Mutual Funds Regulation, 1996.
7. Fund of Funds Scheme
AMCs have been entering into revenue sharing arrangements with offshore funds in respect of investments made on behalf of Fund of Fund schemes. These arrangements create conflict of interest. henceforth AMCs shall not enter into any revenue sharing arrangement with the underlying funds
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