SEBI suggests faster clearance of mutual fund schemes
27 December 2007
Mumbai: The Securities and Exchange Board of India (SEBI) has proposed fast-track clearance of mutual fund (MF) products.
SEBI has proposed that a fund house may be allowed to file a final offer document with the regulator along with compliance certificates and fees. After obtaining confirmation on the receipt of the documents by the regulator, the fund house can offer the scheme to investors.
The proposal posted on its website, the market regulator suggested fast-track clearance of fixed maturity plans with closed ended income schemes, to begin with.
Sebi has sought public comments on its proposal.
At present, a fund house has to file a draft offer document. The regulator will make observations to modify (if required) or include disclosure. After that, the fund house files revised documents and the SEBI communicates to it about the launch of fund.
The proposal is in line with international stipulations where not many approvals are required and fund houses file the final document and goes ahead with the scheme.