Existing mutual fund (MF) schemes will not require approval ofamajority of unitholders to invest in the derivatives segment provided the investors are given the exit option, the Securities and Exchange Board of India (Sebi) said on Monday.
Among other conditions, the relaxation, effective immediately, would be in place only if the MF scheme concerned provides the investors 30 days´ time to exit the scheme without any charges.
It would be applicable for existing mutual funds, whose scheme information documents (SIDs) do not envisage investments in derivatives.
The latest decision has been taken in view of the challenges involved in seeking the consent ofamajority of unitholders due to their vast geographical spread, according to the regulator.
Business Standard New Delhi,21st February 2017
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