Removal of initial issue expenses requires mutual funds to fund distribution costs from entry load for new schemes. Mutual funds must not charge or amortize initial issue expenses for new schemes; sales, marketing and distribution expenses must instead be borne from the entry load. The change applies prospectively to schemes launched after the circular and will be incorporated into subsequent amendments to the mutual fund regulations, implemented under SEBI's investor protection and market regulation powers.
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Provisions expressly mentioned in the judgment/order text.
Removal of initial issue expenses requires mutual funds to fund distribution costs from entry load for new schemes.
Mutual funds must not charge or amortize initial issue expenses for new schemes; sales, marketing and distribution expenses must instead be borne from the entry load. The change applies prospectively to schemes launched after the circular and will be incorporated into subsequent amendments to the mutual fund regulations, implemented under SEBI's investor protection and market regulation powers.
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