SEBI proposes fast track approval system for MF schemes
The aim of adopting the new procedure, SEBI said, is to compress the existing process without compromising on the quality. 'Don't diversify your portfolio too much'
By PTI |
MUMBAI: Market regulator Securities and Exchange Board of India on Thursday proposed a fast track mechanism for clearance of mutual fund schemes.
"To begin with, it is proposed that we may adopt the fast track model for FMPs (fixed maturity plans), (and) close ended schemes," the regulator said in its draft scheme on which it has invited public comments till January 15 next.
Under the proposed model, Asset Management Companies (AMCs) will have to file final offer document with SEBI as against the current practice of submitting draft offer document.
After receiving the confirmation of receipt of the document from SEBI, the AMC would be free to launch the scheme. The regulator, however, will retain the right to advise amendments, "if required in the interest of investors, to the offer document."
The final offer document, which will be posted on SEBI website, will have to be accompanied by due diligence certificate from the trustees and additional due diligence certificate from the compliance committee comprising chief executive of the AMC, compliance head and fund manager.
The aim of adopting the new procedure, the regulator said, is to compress the existing process without compromising on the quality of disclosures to investors.
The proposal seeks to do away with the existing procedure pertaining to disclosing the draft document for comments for 21 working days, receiving the communications from SEBI and launching the scheme within six months.
"To begin with, it is proposed that we may adopt the fast track model for FMPs (fixed maturity plans), (and) close ended schemes," the regulator said in its draft scheme on which it has invited public comments till January 15 next.
Under the proposed model, Asset Management Companies (AMCs) will have to file final offer document with SEBI as against the current practice of submitting draft offer document.
After receiving the confirmation of receipt of the document from SEBI, the AMC would be free to launch the scheme. The regulator, however, will retain the right to advise amendments, "if required in the interest of investors, to the offer document."
The final offer document, which will be posted on SEBI website, will have to be accompanied by due diligence certificate from the trustees and additional due diligence certificate from the compliance committee comprising chief executive of the AMC, compliance head and fund manager.
The aim of adopting the new procedure, the regulator said, is to compress the existing process without compromising on the quality of disclosures to investors.
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The proposal seeks to do away with the existing procedure pertaining to disclosing the draft document for comments for 21 working days, receiving the communications from SEBI and launching the scheme within six months.
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