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<h1>SEBI Issues New Norms for ETFs and Index Funds: Structure, Investment Limits, and Market Making Rules Effective July 2022.</h1> The circular issued by the Securities and Exchange Board of India (SEBI) outlines new regulatory norms for the development of passive funds, specifically Exchange Traded Funds (ETFs) and Index Funds. It addresses the structure, replication, and investment limits for Debt ETFs/Index Funds, including those based on corporate debt securities, government securities, and hybrid indices. The circular also establishes guidelines for market making, investor education charges, direct transactions with Asset Management Companies (AMCs), tracking error and difference, and valuation by Fund of Funds. The provisions are applicable from July 1, 2022, to enhance transparency, liquidity, and investor protection in passive fund investments.