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New Delhi, Mar 4 () Markets regulator Sebi on Wednesday disposed of proceedings against Onelife Capital Advisors after it withdrew application to become Sahara Mutual Fund's sponsor.Sebi issued a show cause notice to Onelife, asking why its application, filed in May 2018 to become Sahara Mutual Fund's sponsor, should not be rejected, and had alleged the company was in non-compliance to various mutual fund regulations.After several submissions and hearings, Onelife eventually on December 31, 2019 wrote to Sebi to withdraw its application."As the application to act as a Sponsor of Sahara Mutual Fund has been decided to be withdrawn and the same has been accepted by Sebi, the extant proceedings becomes infructuous," the regulator said in its order.In July 2015, Sebi had cancelled Sahara Mutual Fund's registration saying it was no longer "fit and proper" to carry out the business and ordered transfer of its operations to another fund house. It had also directed cancellation of Sahara MF's registration on expiry of a six-month period.Later in April 2018, Sebi had directed Sahara Mutual Fund to wind up all its schemes except Sahara Tax Gain Fund, which was permitted to continue till July 27, 2018.Prior to the Sebi's order, Onelife had approached Sebi in March 2018 seeking to acquire Sahara Asset Management Company and become sponsor of Sahara Mutual Fund, but the regulator rejected the application citing non-compliance of the acquirer to mutual fund regulations.Subsequently, Onelife and Sahara AMC had approached the Securities Appellate Tribunal, which had asked them to submit a fresh application with Securities and Exchange Board of India (Sebi) and Onelife filed this application in May 2018. SRS BJBAL

Sebi disposes of proceedings against Onelife Cap as it withdraws application to be Sahara MF sponsor

Markets regulator, the <keyword id="6355630" type="UNKNOWN" weightage="20" keywordseo="securities-and-exchange-board-of-india">Securities and Exchange Board of India</keyword> (<keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword>) on Sunday clarified that mutual funds have many options to meet requirements of the circular on asset allocation of multi-cap funds, based on the preference of their unit-holders. In a clarification issued on Sunday, the SEBI said apart from rebalancing their portfolio in the multi-cap schemes, mutual funds could facilitate switch to other schemes by unit-holders, merge their multi-cap scheme with their large-cap scheme or convert their multi-cap scheme to another scheme category, for instance, large-cum-mid-cap scheme. <keyword id="119509" type="ORGANIZATION" weightage="20" keywordseo="Kotak-Mutual-Fund">Kotak Mutual Fund</keyword> has welcomed the SEBI clarification. Nilesh Shah, Managing Director, Kotak AMC, said in a tweet: "Immense gratitude to SEBI for issuing clarification on a Sunday evening. We will ensure compliance with SEBI Regulations in letter as well as spirit &amp; optimize risk adjusted return for our Investors. Don't take Investment decisions in haste." The SEBI said it is conscious of market stability and therefore, has given time to mutual funds till January 31, 2021 to achieve compliance with the circular, through their preferred route, of which rebalancing of the portfolio is only one such route. "It is reiterated that to achieve the desired objective of True to Label and Appropriate Benchmarking, the SEBI will examine proposals of the industry, if any, received in this regard," it said. The SEBI has issued a circular dated September 11, on multi-cap schemes of mutual funds, requiring them to invest a minimum of 25 per cent each in large, mid and small-cap stocks, with the balance 25 per cent giving flexibility to the fund manager. The regulator said the circular was issued as a need was felt to review the scheme characteristics of multi-cap schemes and take necessary steps to clearly distinguish these from other category of schemes. Multi-cap schemes had flexibility in terms of allocation to large, mid and small-cap stocks. "However, it has recently been observed that some multi-cap schemes have skewed portfolios, with over 80 per cent of investment in large-cap stocks akin to large-cap schemes, and some multi-cap schemes have near zero or insignificant asset allocation to small-cap companies," it said. As per the SEBI circular, it was anticipated that there could be a large inflow of funds into small-cap stocks to meet the requirement of minimum 25 per cent asset allocation. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-future-retail-ril-irctc-bhel-tata-motors-adani-green-vodafone-idea-godrej-properties-sunteck-realty-and-more/articleshow/78097615.cms">Top stocks to watch— Future Retail, RIL, IRCTC, BHEL, Tata Motors, Adani Green, Vodafone Idea, Godrej Properties, Sunteck Realty and more</a> <a href="https://www.businessinsider.in/india/news/delhi-police-arrests-umar-khalid-connection-with-northeast-delhi-riots/articleshow/78097740.cms">Delhi Police arrests Umar Khalid in connection with Northeast Delhi riots</a> <a href="https://www.businessinsider.in/tech/news/tiktok-owner-bytedance-rejected-microsofts-offer-for-the-apps-us-operations/articleshow/78097018.cms">TikTok owner ByteDance rejected Microsoft's bid for the app's US operations, Oracle reportedly chosen as US 'technology partner'</a>

SEBI clarifies that mutual funds will have options apart from rebalancing portfolio

<ul><li>As Indian households embrace financial diversification and mutual funds become more popular, the cost per investor for fund managers is declining. </li><li>As a result, the <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> has decided to restrict the total expense ratio (<keyword id="2782242" type="PERSON" weightage="20" keywordseo="TER">TER</keyword>) for <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword> schemes as a percentage of assets. </li><li>The SEBI has also prohibited mutual fund promoters from paying upfront commissions to brokers, saying that they should follow a trail-commission approach instead. </li></ul>The board members of the Securities and Exchange Board of India (SEBI), the country’s securities regulator, know a thing or two about economies of scale. As Indian households embrace financial diversification and mutual funds become more popular, the cost per investor for fund managers should go down. Keeping this in mind, the SEBI has decided to restrict the total expense ratio (TER) for mutual fund schemes as a percentage of assets. For equity-oriented mutual fund schemes, the most prominent kind of scheme, the TER will be capped at 1.25% for closed-ended schemes and a maximum of 2.25% for open-ended schemes less than ₹5 billion - with a gradual reduction to 1.05% for schemes above ₹500 billion. The TER for index-tracking funds, a passive investment option, will be limited to 1% while the cap for fund of funds will be 2.25%. The SEBI has also prohibited mutual fund promoters from paying upfront commissions to brokers. This means that they can’t make direct payments to brokers from their books. Instead, they will have to pay distributors on a trail-commission basis, which is contingent on how long investors stick with a specific mutual fund scheme. The changes are expected to impact the overall revenues of the mutual fund management industry by ₹15 billion. However, demand for mutual fund schemes is likely to increase significantly. The rules come as the industry reached a record <a href="https://www.amfiindia.com/indian-mutual">₹25.2 trillion </a>of assets under management at the end of August 2018. This marks a four-fold increase from August 2008. Besides making mutual fund investments cheaper, the SEBI also reduced the period for listing shares following an IPO from six days to three and decided to open up the commodity derivatives market to foreign portfolio investors.

India, SEBI just made it a lot cheaper for you to invest in mutual funds

New Delhi, Mar 9 () Market regulator Sebi has revised mutual fund regulations to permit non-bank Sebi-registered custodians to manage gold or gold-related instruments. Currently, only the banks that are registered as custodians with Securities and Exchange Board of India (Sebi) are permitted to manage gold exchange-traded funds (ETFs) and other gold-related products. "In case of a gold exchange-traded fund scheme, the assets of the scheme being gold or gold related instruments may be kept in the custody of a custodian registered with the board," Sebi said revising the mutual fund norms. After the revision of norms, non-banking custodians as well as banking custodians can manage gold ETFs and other gold-related products.For this, the regulator has amended Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. The amendments to the regulation were made after Sebi's board in February approved a proposal to allow bank and non-bank custodians to offer custodian services for gold or gold related instruments such as gold ETFs.The move is aimed at reducing concentration of custodial services for gold or related instruments, Sebi had said.Additionally, Sebi has also allowed sponsors or asset management companies (AMC) to invest in close-ended mutual fund schemes. The sponsor or asset management company has to invest either at least one per cent of the amount which would be raised in the new fund offer or Rs 50 lakh, whichever is less "provided that the investment by the sponsor or asset management company shall be made in such option of the scheme, as may be specified by the board," Sebi said.Presently, the investment by the sponsor or AMC is mandatory in all schemes, except closed-ended schemes. Sebi in its board meeting said, "in order to bring uniformity across schemes, the board has decided that sponsor or AMC shall invest in close ended schemes also." SRS ANSANS

Sebi allows non-bank custodians to manage gold, related instruments

Market regulator Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="100" keywordseo="sebi">SEBI</keyword>) has issues a new set of rules, allowing investors to redeem only up to Rs 2 lakh from a mutual fund (MF) scheme in case the fund house faces systemic crisis. Other than this, the fund houses are also allowed to impose restrictions on redemptions only if either there is a systemic crisis or in case something severely constricts market liquidity. 
 
The move has come after the redemption crisis that JP Morgan faced last September, in two of its schemes involving Amtek Auto. 
 As per SEBI’s latest note, the changes come into effect immediately for new schemes launched now onwards, while the existing ones would get the changes from July 1st. The note says that an asset management company (<keyword id="6358378" type="CITY" weightage="100" keywordseo="AMC">AMC</keyword>) can impose restriction only in case of broad liquidity issues, which lay an effect on "almost all securities rather than any issuer specific security," in case of market failures or exchange closures or under exceptional operational problems. 
 
Also, these restrictions can be imposed only for a maximum 10 working days after taking prior approval from its board and trustees. 
 
If investors request for redeeming more than Rs 2 lakh, fund houses would have to redeem the first Rs 2 lakh without any restrictions after which the remaining part would be subject to the restriction. 
 
<a href="http://www.yashcapital.com/services-images/93-mutual-fund.jpg">Image source</a>

If fund house takes a hit, your mutual fund will too get affected. Here’s how

New Delhi, Dec 10 () Debt-oriented mutual fund schemes that have more than 10 per cent exposure to their sponsors' group companies before October 1 have been allowed to continue with such investments till respective maturity dates.
 Markets regulator Sebi's decision to provide such an exemption comes against the backdrop of debt-oriented mutual funds having a cap of 10 per cent in terms of their exposure to group firms of sponsors as well as asset management companies.
 A circular about the 10 per cent limit was issued by Sebi on October 1, 2019.
 In the latest circular, Sebi said "the investments of mutual fund schemes in debt and money market instruments of group companies of both the sponsor and the asset management company of the mutual fund in excess of the limits specified therein, made on or before October 1, 2019 may be grandfathered till maturity date of such instruments".
 The maturity date of such instruments shall be as applicable on October 1, 2019, the regulator added.
 Sebi has asked all asset management companies to publish on their respective websites a list of their group companies and those of their sponsor.
 Further, the regulator has directed mutual fund industry body Amfi to publish on its website a list of all group companies along with names and identifier of the respective group that are considered for calculation of group exposure by mutual fund schemes and also the sector to which each company belongs.
 In regard to group level exposure limit, the investments by debt mutual fund schemes in debt and money market instruments of group companies of both the sponsor and the mutual fund house should not exceed 10 per cent of the net assets of the scheme.
 Such investment limit may be extended to 15 per cent of the net assets of the scheme with the prior approval of the board of trustees.
 The regulator also said disclosure about the existing investments of mutual fund schemes in unlisted debt instruments, including non-convertible debentures (NCDs), need to be made on first working day of each calendar quarter starting from January 1, 2020.
 Besides, the disclosure is applicable for all fresh investments made by fund houses in unlisted NCDs.
 In October, Sebi allowed the maximum investment in unlisted NCDs will be 15 per cent of the debt portfolio of the scheme from March 31, 2020, and the investment limit will be 10 per cent from June 2020. SP RAM ABM
ABM

Sebi provides relaxation on group exposure limit for MFs

New Delhi, Feb 26 () Capital markets regulator Sebi on Wednesday allowed investors to directly access the infrastructure of stock exchanges for purchasing and redeeming mutual fund units directly from mutual fund and asset management companies.The move is aimed at further increasing the reach of the platform, Sebi said in a circular.Before this, the regulator allowed investment advisors and mutual fund distributors to use stock exchanges for sale and purchase of mutual fund units in October 2016 and October 2013, respectively.Prior to that, only brokers were allowed to utilise the exchange mechanism for transaction in mutual fund units. SRS ANUANU

Sebi allows investors to access stock exchange infra to transact in MFs

Mumbai, Nov 20 () Sebi Chairman Ajay Tyagi on Wednesday said mutual funds will join the resolution process of DHFL to be done under the insolvency law framework.
 Amid the crisis at DHFL, once a leading player in the housing finance space, the Reserve Bank of India (RBI) on Wednesday superseded the board of the company.
 Mutual funds, which have lent substantial sums of money to DHFL had not joined previous attempts at resolution, after financial woes at the company came to light.
 "Under the IBC, mutual funds are also considered as lenders and they will follow that rule. We have nothing to say on that," Sebi Chairman Ajay Tyagi told reporters here, without naming DHFL.
 Resolution of financial service providers can now be taken up under the Insolvency and Bankruptcy Code (IBC), with the government notifying a generic framework for such cases.
 Tyagi said that a distinction has to be made between ICA (Inter-Creditor Agreement) and IBC, while making it clear that mutual funds would join the process under the Code.
 ICA was primarily for entities regulated by the central bank and akin to an "out of court settlement" before an asset goes to the National Company Law Tribunal (NCLT), he added.
 According to him, Sebi had given mutual funds the choice on whether to join ICA or not and made it clear that if they join, it should be limited to clearing the stock of toxic assets.
 "While doing so, Sebi had made it clear that mutual funds are different in structure as compared to banks," he noted.
 RBI has appointed R Subramaniakumar, ex-managing director of Indian Overseas Bank, as administrator of DHFL, which is estimated to have debt worth over Rs 1 lakh crore. AA RAM RAM
RAM

Mutual funds will join DHFL resolution process: Sebi chief

New Delhi, Jan 12 () Emerging investment instruments REITs and InvITs seem to be finally catching investors' fancy, with mutual funds investing a whopping Rs 12,000 crore in such units in 2019.
 Fund managers infused Rs 670 crore in real estate investment trusts (REITs) and Rs 11,347 crore in infrastructure investment trusts (InvITs) last year, according to the Securities and Exchange Board of India (Sebi).
 Mutual funds have increased their exposure in these investment avenues over the past one year. Investment by fund houses in REITs jumped to Rs 72.5 crore in December 2019 from a mere Rs 7 crore in January 2019, while the same in InvITs rose to Rs 948 crore from Rs 611 crore during the period under review.
 Market experts believe that REITs could be a potential investment option giving good returns as interest of investors in the residential segment is declining due to inability to monetise assets and limited appreciation in property prices. 
 They further said that investment in InvITs may pick up in the coming months following Reserve Bank of India's decision to allow banks to lend to InvITs.
 Sebi Chairman Ajay Tyagi, who had met scores of foreign investors in the US in October, said he saw keen interest from them in emerging areas such as REITs and InvITs. 
 During the meeting, the participants were enthusiastic about emerging areas such as REITs and InvITs, which have more than USD 10 billion asset size as on date.
 Sebi first issued the guidelines for REITs and InvITs in 2014, and revised them in 2016 and 2017.
 However, mutual funds, which are investment vehicles made up of a pool of funds collected from a large number of investors and invest in stocks, bonds, money market instruments and similar assets, were allowed to invest in REITs and InvITs in February 2017.
 The move was part of the markets watchdog Sebi's effort to get more number of investors into such instruments.
 Under the norms, a mutual fund has been permitted to invest only up to 5 per cent of its net asset value in units of a single issuer of alternative securities. The maximum allowed investment in alternative instruments by a single fund has been capped at 10 per cent.
 Ever since Sebi introduced InvITs, markets witnessed the listing of two public InvITs -- IRB InvIT Fund and India Grid Trust. Three InvITs -- IndInfravit Trust, India Infrastructure Trust, Oriental InfraTrust --- were privately placed. On the other hand, Embassy Office Parks REIT is the only listed real estate investment trust. SP 
ABM

REITs, InvITs pick up steam; mutual funds pour in Rs 12,000 cr in 2019

New Delhi, Dec 6 () Markets regulator Sebi on Friday directed three public sector financial institutions -- LIC, SBI and Bank of Baroda -- to dilute their stakes to below 10 per cent in UTI Asset Management Company (AMC) by December next year.
 In the case of non-compliance with directions, the shareholding and voting rights of these entities in UTI AMC and UTI Trustee in excess of 9.99 per cent and corporate benefits will be frozen till the time they comply with the orders.
 UTI AMC is promoted by four public sector financial institutions as sponsors -- State Bank of India (SBI), Life Insurance Corporation of India (LIC), Bank of Baroda (BoB) and Punjab National Bank (PNB) -- with each of them presently holding 18.24 per cent stake in the fund house, while private equity firm T Rowe Price International holds 26 per cent stake in UTI AMC.
 Sebi observed that LIC, SBI and BoB are the sponsors of LIC Mutual Fund, SBI Mutual Fund and Baroda Mutual Fund, respectively, and they also hold more than 10 per cent stake each in these mutual funds.
 In addition, LIC, SBI and BoB are also sponsors of UTI AMC and hold more than 10 per cent stake individually in the AMC and trustee company of UTIMF.
 "The noticees (LIC, SBI and BoB) are sponsors of more than one mutual fund and hold more than 10 per cent shareholding in more than one AMC and trustee company and, hence, are not in compliance with the requirements of ...the MF regulations," Sebi said in an order.
 Sebi amended the mutual fund regulations in March 2018, wherein a shareholder or a sponsor owning at least 10 per cent stake in an AMC is not allowed to have 10 per cent or more stake in another mutual fund house operating in the country.
 In addition, such entities are not allowed to have a representation on the board of another mutual fund house.
 Entities not in compliance with the requirement was given time up to March 2019 to comply with the requirement.
 Besides, it was alleged that LIC and SBI had nominated directors on the board of UTI AMC.
 In their reply to Sebi, they said they had nominated directors in accordance with the provisions in the shareholder agreement and further clarified that such nominees were also not their directors. It was also submitted that none of the working employees of LIC or SBI were on the board of UTI AMC or UTI Trustee and the nominated directors did not have any reporting relationship with the two companies.
 Sebi said that despite the expiry of over 20 months from the date of amendment of the regulations, the three entities are yet to achieve compliance with these requirements. While they have shown that they have initiated some steps to dilute their stake in UTI AMC, the substantial compliance with the regulation "still remains pending".
 Accordingly, the regulator has said that the voting rights of LIC, SBI and BoB in UTI AMC and UTI Trustee shall be brought down below 10 per cent on or before December 31, 2020.
 Also, they have been asked to take suitable steps to ensure compliance with regards to board composition.
 "In the event of non-compliance with the aforesaid directions, the shareholding and voting rights of the noticees in UTI AMC and UTI Trustee in excess of 9.99 per cent and corporate benefits thereon shall stand frozen till such time the noticees comply with the aforesaid directions," it added. SP HRS

Sebi orders LIC, SBI, Bank of Baroda to reduce stake to below 10 pc in UTI AMC by Dec 2020

<ul><li><keyword id="111876" type="General" weightage="20" keywordseo="bajaj-finance" source="Orion">Bajaj Finance</keyword> market cap stock overtakes that of SBI after the reports.</li><li>Indian financial services company <keyword id="85462" type="General" weightage="20" keywordseo="bajaj-finserv" source="Orion">Bajaj Finserv</keyword> got <keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">SEBI</keyword> nod to start a mutual fund business.</li><li>The news triggered the shares of Bajaj Finserv and its subsidiary Bajaj Finance to become the top two gainers on the Nifty 50 index.</li><li>The market capitalisation of Bajaj Finance reached ₹4.22 lakh crore while that of Bajaj Finserv stood at ₹2.61 lakh crore.</li></ul>Shares of financial services companies Bajaj Finserv and Bajaj Finance surged as the former received the market regulator’s nod to start a mutual fund business. The shares of Bajaj Finserv reached its one year high of ₹16,584. The company had filed the application on September 28, 2020 to market regulator Securities and Exchange Board of India (SEBI). Bajaj Finance is the subsidiary of Bajaj Finserv. “The Company would be setting up an asset management company and the trustee company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws,” said Bajaj Finserv in an exchange filing. Another financial services company Zerodha is also waiting for the regulator’s nod to launch a mutual fund business. Frontline Capital Services, Wizemarkets Analytics, Unifi Capital, Alchemy Capital Management and Helios Capital Management are some other companies in line waiting for SEBI’s approval. The ₹35 lakh crore <keyword id="35476" type="General" weightage="20" keywordseo="mutual-fund-industry" source="Orion">mutual fund industry</keyword> has 44 mutual fund houses with HDFC Mutual Fund and SBI Mutual Fund being the top two asset management companies. <div type="image" title="Bajaj finance 2" height="900" width="1200" msid="85589505" hostid="261"></div> Shares of Bajaj Finserv’s subsidiary Bajaj Finance gained 4% on the news to reach a 52 week high of ₹7,049. Moreover, the market capitalisation of the company went up to ₹4.22 lakh crore crossing India’s biggest lender State Bank of India’s market cap of ₹3.71 lakh crore. <div type="image" title="Bajaj finance" height="900" width="1200" msid="85589515" hostid="261"></div> Bajaj Finance and Bajaj Finserv were among the top two gainers on the Nifty 50 index today. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-loses-over-4-million-subscribers-airtel-and-jio-add-over-9-million-in-june/articleshow/85589113.cms">Vodafone Idea loses over 4 million subscribers, Airtel and Jio add over 9 million in June</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrency-mining-in-iran-easing-but-china-maintain-strict-stance/articleshow/85588848.cms">Iran is bringing back cryptocurrency mining, but China shows no signs of changing its mind</a>

Bajaj Finance gets bigger than SBI after SEBI allows parent Bajaj Finserv to sell mutual funds

<ul><li>On April 28, <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> released a circular asking mutual fund companies to provide 20% of salary in <keyword id="44804" type="COUNTRY" weightage="20" keywordseo="MF">MF</keyword> units to key employees. </li><li>The move came after the <keyword id="74229" type="PERSON" weightage="20" keywordseo="Franklin-Templeton">Franklin Templeton</keyword> fiasco to align the interest of the key employees with that of investors. </li><li>The heads of several mutual fund companies are disappointed as the new rule by SEBI translates 20% of their salary into mutual fund units. </li></ul>On April 28, 2021, SEBI informed the asset management companies (AMC) to provide a minimum of 20% salary/perks/bonus/non-cash compensation of key employees in the form of a mutual fund unit. The idea was to align the interest of the key employees with that of investors. A mutual fund unit is a portion of one’s investment from the pool of funds set by the mutual fund company. The move came after the Franklin Templeton <a href="https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms">fiasco </a>wherein the fund house one day suddenly closed six debt mutual fund schemes overnight citing poor liquidity condition in debt markets due to the pandemic-induced crisis. This led to panic among investors who were unable to access their investment thereon. The new mandate by the market’s regulator is applicable for key employees including chief executive officer (CEO), chief investment officer (CIO), chief risk officer (CRO), chief information security officer (CISO), chief operation officer (COO), fund manager, compliance officer, sales head, investor relation officer (IRO), heads of other departments and dealers of the AMC. Direct reportees to the CEO (excluding personal assistant/secretary), fund management team and research team are also included in this list. “After the Franklin Templeton incident, there is no enthuthiasm among newcomers to join the industry. Basically, it is no more an attractive career opportunity with so many regulations in place. These professionals would prefer working in a private equity, PMS (portfolio management services), AIF (alternative investment funds), fintech company which has less regulatory complications. With this, top talents will have one more reason to not choose the mutual fund industry as a career option,” said the chief executive of one of the top mutual fund companies on condition of anonymity. There is complete misalignment of mandatory investment for employees with varied risk appetite and investment time horizon, he added. “The circular on skin in the game, while a good idea in spirit, is going to be extremely problematic in implementation. This circular applies to not just senior employees but junior research staff, dealers, and support function heads. These people don’t earn the kind of money CEOs and CIOs do,” said Radhika Gupta, managing director and CEO of <keyword id="222564" type="COMPANY" weightage="20" keywordseo="Edelweiss-Mutual-Fund">Edelweiss Mutual Fund</keyword> in <a href="https://twitter.com/iradhikagupta/status/1387433870623055880?lang=en">a tweet </a>on April 28, the day SEBI released this circular. “It is forcing them to lock 20% of their income for 3 years. It mandates how much one saves. For a guy earning ₹15-20 lakh [in a year], imagine how difficult it is to put away ₹3-4 lakh [per annum]. We are constraining employee cash flows. Just because I run a mid-cap fund doesn’t mean this is my risk appetite. And a liquid fund manager has to park money in liquid funds for 3 years,” she added. In simpler terms, why would a 30-year-old fixed income fund manager invest a significant portion of his salary in a debt scheme. The objective of a debt fund is to grow wealth in a stable manner with typically lower returns and low risk compared to equity funds. Further, the fund houses have addressed these concerns to SEBI through Association of <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">Mutual Funds</keyword> in India (AMFI). It expects some sort of relief from the regulator in terms of reducing the percentage of salary to be given in MF units and cutting some junior level employees from the initiative. Considering this, SEBI has deferred the implementation of the new compensation norms by three months to October 1, 2021. The new rules were supposed to come into effect from July 1, 2021. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrencies-exchanges-can-run-into-trouble-with-investors/articleshow/84205889.cms">Cryptocurrencies aren't all diamonds and roses — lawsuits from people who lost big are piling up with exchanges</a> <a href="https://www.businessinsider.in/business/auto/news/simple-energy-new-electric-scooter-promises-240km-range-on-a-70-minute-charge/articleshow/84164967.cms">This new electric scooter promises 240KM range on a 70-minute charge, could be priced under ₹1,20,000</a>

You Searched For "Sebi mutual funds" and got 12 results

Sebi disposes of proceedings against Onelife Cap as it withdraws application to be Sahara MF sponsor

PTI

SEBI clarifies that mutual funds will have options apart from rebalancing portfolio

IANS

India, SEBI just made it a lot cheaper for you to invest in mutual funds

Dilsher Dhillon

Sebi allows non-bank custodians to manage gold, related instruments

PTI

If fund house takes a hit, your mutual fund will too get affected. Here’s how

BI India Bureau

Sebi provides relaxation on group exposure limit for MFs

PTI

Sebi allows investors to access stock exchange infra to transact in MFs

PTI

Mutual funds will join DHFL resolution process: Sebi chief

PTI

REITs, InvITs pick up steam; mutual funds pour in Rs 12,000 cr in 2019

PTI

Sebi orders LIC, SBI, Bank of Baroda to reduce stake to below 10 pc in UTI AMC by Dec 2020

PTI

Bajaj Finance gets bigger than SBI after SEBI allows parent Bajaj Finserv to sell mutual funds

Bhakti Makwana

Getting a senior level job in a mutual fund company may not be so attractive after SEBI rule of giving 20% salary in MF units

Bhakti Makwana

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