ASBA for mutual fund NFOs expanded and NFO period shortened, with stricter disclosure and dividend accounting controls. Mutual funds must disclose brokerage and commission paid to sponsors and related parties in a prescribed format; ASBA is extended as an additional payment mode for NFOs, NFO period is reduced to 15 days with investment of proceeds only after NFO closure and allotment/refund/statement dispatch within five business days; Unit Premium Reserve cannot be used for dividend distribution and AMCs must disclose voting policies and proxy votes, must not charge additional management fees on no-load schemes, and Fund of Funds AMCs may not enter into revenue sharing with underlying funds.
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.
ASBA for mutual fund NFOs expanded and NFO period shortened, with stricter disclosure and dividend accounting controls.
Mutual funds must disclose brokerage and commission paid to sponsors and related parties in a prescribed format; ASBA is extended as an additional payment mode for NFOs, NFO period is reduced to 15 days with investment of proceeds only after NFO closure and allotment/refund/statement dispatch within five business days; Unit Premium Reserve cannot be used for dividend distribution and AMCs must disclose voting policies and proxy votes, must not charge additional management fees on no-load schemes, and Fund of Funds AMCs may not enter into revenue sharing with underlying funds.
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