As The Sebi Restriction Nears Its End, AMCs Preparing To Introduce New Schemes From July

Asset management companies are preparing to launch new mutual fund plans from July as financial market regulator Sebi closes the launch of new fund contributions nearing completion.

Sebi Restriction

After a brief hiatus, asset companies are preparing to launch new joint fund plans from next month as the financial market regulator closes Sebi’s three-month closure with the launch of new fund contributions nearing completion.

In addition, asset management companies (AMCs) have a fixed amount of revenue in terms of fixed revenue and budgets and special offers in specific sectors to fill product gaps.

The Securities and Exchange Board of India (Sebi) had postponed the introduction of the NFOs until new systems relating to collective accounts were decided and the regulator set July 1 as the deadline for the implementation of the new system.

So far this month, at least six AMCs – including PGIM India Mutual Fund (MF), Sundaram MF, Baroda BNP Paribas MF, LIC MF, and Franklin India MF – have filed papers. offered to Sebi seeking his permission to introduce new schemes.

Apart from this, the draft papers were submitted to the program manager on 15 April-May by 12 fund houses.

“It appears that NFO launch spike would be back from next quarter. In two phases, the AMC bandwidth has been eliminated from making significant changes in customer cash flow as Sebi has directed them to stop using pool accounts.

In addition, at the same time, markets have also been flexible.” Statement by Swapnil Bhaskar, Head of Strategy, Niyo – a neo-banking platform for thousands of years.

Going forward, some AMCs will start introducing new fund contributions (NFOs) as there are new processes and see value in the market due to the adjustment, he added.

Kaustubh Belapurkar, Managing Director of Research, Morningstar Investment Adviser India, said with the suspension of the new fund a few months ago, asset managers would look into introducing the funds as the situation returned to normal.

Asset managers have a reduction in both fixed income and budget and special delivery in certain sectors to close product gaps.

Fundraising for investors and units by stockbrokers and members of the fund by any means and by advisers or distributors of the mutual investment fund (wherever possible) for the use of the mutual fund will be discontinued from 1 April.

However, after negotiations and consensus, Sebi gave the joint venture industry extended periods until July 1 so that the industry could deliver the highest level of efficiency for investor profits and the efficiency of joint venture registrations and redemption.

According to Sandeep Bagla, CEO of Trust MF, many coordinators reorganized their programs to address Sebi’s concerns about pool accounts. Joint funds are looking forward to launching NFOs in July.

“The distribution industry and other service providers/forums are in the process of complying with regulatory requirements and we hope to authorize the introduction of NFOs next quarter.” statement is told by Prateek Pant, Chief Business Officer – Whiteoak Capital Asset Management.

He added that Whiteoak Capital AMC is looking forward to launching its first Equity NFO fund – Whiteoak Capital Flexicap fund – and in the next 6 months, plans to launch other equity products in various sectors such as Midcap, Largecap, and Tax Store.

Sebi’s diktat contributed to the launch of the new programs as the ongoing 2022-23 financial year saw the launch of only four NFOs with a total of Rs 3,307 crore, while the ICICI Prudential Housing Opportunities Fund took up a significant portion of Rs 3,159 crore.

In 2021-22, AMCs presented 176 new fund contributions (NFOs) received Rs 1.08 lakh crore. By comparison, 84 NFOs floated in 2020-21 and accumulated, these funds managed to raise Rs 42,038 crore.