The year is not as bad as we think of 2020. According to the fresh reports, here is the great news for all the mutual fund sponsors. Sebi has stated a few great things to ease the process of the market investment. It will open the doors of innovations and will give a broad expansion in the current market. You can get News/updates on the latest marathi news channel.
The market regulator SEBI has called a meeting where they advertise mentioned and made the arrangements for mutual fund sponsors regarding the eligibility. They have also stated that the assets and liability will be separated.
What other things have they covered up in the meeting?
All the decisions are made up by considering the current and future requirements of the market.
Apart from the mutual fund sponsors eligibility, and separate bank accounts and securities bank accounts, a few important decisions have also been made by the market regulator organization SEBI.
- They have approved physical unit certificates.
- A proposal is done for the maximum permissible exit load
- Reducing the timeliness for the payment of dividend
Main Key Points of the SEBI’s December meeting
As there is no such condition of profitability is essential to be mutual fund sponsors, people can easily take advantage of this and try their best to maintain the net worth of 100crore for the support of AMC.
According to Omkeshwar Singh, a while ago it was required to have a significant amount of profit in at least three years out of five years, that is when the depreciation, tax, and interest had paid off. As the new statement has revealed so there’s no need to have the profit for five years and including 5 years, the beginners can become a sponsor and make an application for mutual funds.
Additional payment mode/options for dividends
In the series of updates and arrangements, the exciting thing about the payment methods. SEBI has approved additional payment modes for the dividend. In this way, it will display the exact status of payment, interest, and penalties applied to the late dividend.
The main element of SEBI’s December announcement is that the mutual fund sponsors are now eligible to qualify for the application regardless of that they have failed to profitability factor. Before this meeting, it was mandatory to have the 100 crores of net worth for the 5 years to give support in AMC.
Important announcement from SEBI
SEBI has announced that there are so many schemes are presented in a mutual fund with these schemes, all the assets and liabilities are held in compound form. Now we have decided to separate all the schemes associated with the assets and liabilities.
Now each scheme has an asset and liability and that will be displayed after the separation of distinct assets and liabilities of the scheme.
The decision has made a lot of discussions and exercises. The suggestions and opinions are received for mutual fund proposals coming from stakeholders. The objective of the discussion is to wipe off the needless proposals, to support and make important arrangements that match with current and ongoing Acts, standards, and SEBI rules and regulations, and to direct operational and market difficulties.
After these announcements, SEBI has said, these new ingredients in mutual fund regulations will attract the new players of the market and give them relaxation at the time of application as there’ no pressure to have a significant amount of profit.
SEBI also makes the decision that is according to comfort and betterment of market actions and investors and stakeholders.
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