Informist, Friday, Jul 29, 2022
MUMBAI – The Securities and Exchange Board of India has extended the deadline for the implementation of the norm on direct transactions of exchange-traded funds to Nov 1. The deadline was Jul 1 earlier.
In May, the regulator had said that direct transactions of exchange-traded funds with asset management companies should be facilitated only above 250 mln rupees.
However, in a circular issued late on Thursday, the regulator said that it received feedback from various stakeholders, expressing challenges with respect to the implementation of the norm.
“I think SEBI might have delayed it so that, in the meantime, liquidity can increase more on the exchange, and large investors who want to buy less than 250 mln rupees can still come to AMCs directly,” said Siddharth Srivastava, head, exchange-traded fund products, Mirae Asset Investment Managers India Pvt Ltd.
Srivastava added that as and when the liquidity increases, which is expected to happen gradually, the limits will be implied from the revised date.
On May 23, the regular had issued additional guidelines for passive mutual fund schemes and modified certain existing norms, which came into effective from Jul 1. End
Reported by Kshipra Petkar
Edited by Namrata Rao
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