Regulatory Alerts2024-12-31
Introduction of Mutual Funds Lite Framework for Passive Schemes
The Securities and Exchange Board of India (SEBI) introduced the Mutual Funds Lite (MF Lite) framework to establish a relaxed regulatory regime for passively managed mutual fund schemes. This initiative aims to promote ease of entry, encourage new players, and reduce compliance costs by modifying eligibility criteria, net worth thresholds, and trustee responsibilities for eligible passive funds. The framework specifies coverage for domestic and overseas indices, streamlines sponsor requirements, and simplifies reporting obligations to foster market liquidity and innovation.
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