Market regulator Sebi on Thursday said that timelines for portfolio rebalancing in mutual fund schemes will now be applicable to all types of passive breaches across actively managed schemes, which was earlier limited to only asset allocation. A passive breach refers to unintended deviations from the mandated asset allocation or regulatory limits that do not arise from the direct actions or omissions of asset management companies (AMCs).
Advisory committee for lower charges, stricter compliance.
The S A Dave-headed mutual fund advisory committee has recommended to the Securities and Exchange Board of India that mutual fund investors pay the commission to distributors directly. Accordingly, mutual fund investors will have to give separate cheques to distributors as commission if Sebi approves this recommendation.
Out of 3,871 recovery certificates issued by the regulator in various cases, 807 have been certified as difficult to recover.
While experts' views are divided, the move is aimed at improving the coordination between the government and the regulator.
This is aimed at improving liquidity in all schemes and would help them to meet sudden redemption pressures, said Sebi chairman Ajay Tyagi.
They are making switch to the high-growth alternative investments fund industry, reports Pavan Burugula.
Sebi has time and again voiced its concerns over higher agents' fees.
The framework does not allow settling of serious violations that have 'market-wide impact'.
For existing investors, it may be prudent to redeem their current investments in gilt or dynamic schemes and invest it in short-term funds, if the exit load is not very high, advises Malhar Majumder.
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