Mutual fund derivatives participation: existing schemes may introduce derivatives without unit-holder consent; investors given exit window and disclosures. Existing mutual fund schemes whose SIDs do not envisage derivatives may introduce derivatives without obtaining positive consent from a majority of unit holders, provided all investors are offered a no-exit-load exit option for a prescribed window, the extent and manner of participation and associated risks are disclosed with suitable numerical examples, and the scheme complies with applicable regulatory provisions prior to commencing derivatives exposure.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mutual fund derivatives participation: existing schemes may introduce derivatives without unit-holder consent; investors given exit window and disclosures.
Existing mutual fund schemes whose SIDs do not envisage derivatives may introduce derivatives without obtaining positive consent from a majority of unit holders, provided all investors are offered a no-exit-load exit option for a prescribed window, the extent and manner of participation and associated risks are disclosed with suitable numerical examples, and the scheme complies with applicable regulatory provisions prior to commencing derivatives exposure.
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