In its board meeting held today, The Securities and Exchange Board of India, or SEBI, said that it has accepted the recommendations of Mutual Fund Advisory Committee, or MFAC, to reduce the additional expenses charged to schemes in lieu of exit loads from 20 basis point to five basis point.
A recent Mint report said that fund houses have overcharged investors by as much as Rs 1,500 crore. SEBI’s move will result in lower costs for investors.
Go Green Initiative
Fund houses will no longer be required to publish daily net asset values, or NAVs in newspapers. Further, SEBI has said that fund houses will not be required to send physical copies of scheme annual reports and statement of scheme portfolios on half-yearly basis to all the investors whose email addresses are not available.
Instead, these details will now be published on the websites of Association of Mutual Funds in India, or AMFI, and fund houses. Fund houses will be required to publish an advertisement informing about hosting of the annual report and statement of scheme portfolios on the websites and provide the relevant information to investors upon request.
