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Sebi Relaxes Compliance Requirements For Mutual Funds

SEBI fulfills compliance requirements for mutual funds

The Securities and Exchange Board of India (SEBI), has decided to temporarily relax compliance requirements for mutual funds in view of recent market events surrounding COVID-19. Saying that, when it comes to all schemes New Fund Offer (NFO), where the regulator has already issued an observation paper and is not yet launched, the validity of one year from the date of SEBI letter Will be the period. Similarly, SEBI has extended such deadlines for certain disclosures.

“In light of the difficulties expressed by AMC, the currently used access control in AMC’s dealing room, which includes call recording of deals, is temporarily subject to checks and balances, which include electronic confirmation. , Which includes email or other systems that have an audit trail. ”Notes SEBI.

For mutual fund houses, the half-yearly disclosures of unaudited financial results, which took place on April 30, 2020, have been extended for another month till May 31, 2020. Further disclosure of the commission paid to distributors has been extended till 10 April. , 2020 to May 10, 2020. When it comes to annual disclosure of investor complaints regarding mutual funds, it has been extended from May 31, 2020 to June 30, 2020. SEBI has also extended the effective date of implementation of some. Policy initiatives.

This includes the Risk Management Framework for Liquid and Overnight Funds and the norms governing investment in short-term deposits, for which the implementation date has been extended from May 1, 2020 to the due date April 1, 2020. Apart from this, the circular relating to the review of investment criteria for mutual funds for investment in debt and money market instruments on October 1, 2019, the implementation date has been extended from April 1, 2020 to May 1, 2020.

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