“It is noted that in case of some designs, there is a significant overlap in portfolios. It is necessary to introduce industry limits with similar portfolios,” says Sebi on a friday’s discussion paper.
Sebi suggests new limits of what many two methods can prevent the same insecurities, to ensure variation of funds. The regulator suggests Capping Portfolio by 50% for value and contractual funds, as well as for sex and category category of equity. This is to help investors separate a product from another.
Overlapping status monitoring NFO (new fund offers) or on a semi-annual basis using the month portfolios.
Scheme Nomenclature
While the existing structure of five wide groups – equity, debt, hybrid, orders of indipro and ETFs) – the conflicts of the funds in the state-trading ties – charged with states traded in states
Sebi suggests standard of naming mutual fund designs, which should directly display their category. For example, a large con to fund will be called a ‘great approach to cap’. Sebi also suggests repeating certain debt methods to better show their investment attributes. It suggests the change of ‘lower Duration Fund’ of ‘Ultra short in the short term fund’. In addition, the regulator suggested that funding names can include intended duration, such as ‘medium term funds (3 to 4 years)’.
Lock-in
Sebi suggests that Solution-based designsLike retirement and funds to children, should bring a certain time lock-in. While this lock-ins is available to new investments, the existing investors can be free, it is said.
Second plot
The regulator suggests the consent of the asset management companies to launch a second approach to a single-category, subject to conditions.
The existing scheme should be at least five years old and have assets under the supervision of over ₹ 50,000 crore. While the new method should have similar goals and parts, there should be a separate fund manager, and the existing method stops receiving fresh subscriptions.
“Become a Picture a Having a Lunance Procedure with an additional scheme in case of an important reduction in an area of existing method,” as the Sebi paper.
