SEBI Circular for Mutual Funds/AMCs/Trustee Companies/Board of Trustees of Mutual Funds

Feb 05, 2018 | by Avantis RegTech Legal Research Team

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The Securities and Exchange Board of India (SEBI) has issued a circular for all Mutual Funds, Asset Management Companies (AMCs), Trustee Companies and Boards of Trustees of Mutual Funds regarding charging of additional charges up to 0.20% as mentioned in Regulation 52(6A)(c) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.  Regulation 52 of this regulation prescribes the limitation on fees and expenses on issue of schemes by the asset management company.

With respect to these charges, SEBI has clarified that Mutual Fund schemes including close ended schemes, where in exit load is not levied or not applicable, the AMCs shall not be eligible to charge the above mentioned additional expenses for such schemes.

Further, SEBI also stated that existing Mutual Fund schemes including close ended schemes, wherein exit  load is  not  levied  or not  applicable,  shall  discontinue the levy of above mentioned additional expenses, if any, with immediate  effect.

[SEBI Circular: SEBI/HO/IMD/DF2/CIR/P/2018/15]

 

URL: https://www.sebi.gov.in/legal/circulars/feb-2018/charging-of-additional-expenses-of-upto-0-20-in-terms-of-regulation-52-6a-c-of-sebi-mutual-funds-regulations-1996_37689.html


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