Rebalancing timelines for mutual fund portfolios impose rebalancing, disclosure, and operational restrictions for prolonged asset allocation deviations. Timelines require schemes (excluding overnight, index and ETFs as specified) to rebalance mandated asset allocations within a prescribed business-day period for passive breaches; the Investment Committee may extend timelines on written justification. Failure to rebalance after mandated plus extended periods leads to restrictions on launching new schemes and prohibition on levying exit load for investors exiting affected schemes. AMCs must report deviations to trustees at each stage and, where the deviated portfolio exceeds a specified proportion of the main portfolio, immediately notify investors by SMS and email/letter about the breach and subsequent rebalancing, using a uniform subject line; periodic disclosures must reflect ongoing deviations. The norms apply only to main portfolios.
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Provisions expressly mentioned in the judgment/order text.
Rebalancing timelines for mutual fund portfolios impose rebalancing, disclosure, and operational restrictions for prolonged asset allocation deviations.
Timelines require schemes (excluding overnight, index and ETFs as specified) to rebalance mandated asset allocations within a prescribed business-day period for passive breaches; the Investment Committee may extend timelines on written justification. Failure to rebalance after mandated plus extended periods leads to restrictions on launching new schemes and prohibition on levying exit load for investors exiting affected schemes. AMCs must report deviations to trustees at each stage and, where the deviated portfolio exceeds a specified proportion of the main portfolio, immediately notify investors by SMS and email/letter about the breach and subsequent rebalancing, using a uniform subject line; periodic disclosures must reflect ongoing deviations. The norms apply only to main portfolios.
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