Ease of doing business - Streamlining of prudential norm for passive schemes regarding exposure to securities of group companies of the sponsor of Mutual Funds
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Exposure cap for sponsor group securities: passive ETFs and index funds follow index weight, subject to cap and rebalancing rules. Equity oriented ETFs and Index Funds tracking widely tracked, non bespoke indices may invest in group company securities in accordance with index weight subject to an overall exposure cap. Eligible indices are determined by an AUM threshold and listed semi annually by AMFI after approval. Passive schemes tracking indices outside the eligible list must rebalance within the prescribed timeframe; the AMC's Investment Committee may extend that period for limited time upon written justification. Failure to rebalance within mandated timelines bars new scheme launches and prohibits levy of exit load on exiting investors until compliance.
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.
Exposure cap for sponsor group securities: passive ETFs and index funds follow index weight, subject to cap and rebalancing rules.
Equity oriented ETFs and Index Funds tracking widely tracked, non bespoke indices may invest in group company securities in accordance with index weight subject to an overall exposure cap. Eligible indices are determined by an AUM threshold and listed semi annually by AMFI after approval. Passive schemes tracking indices outside the eligible list must rebalance within the prescribed timeframe; the AMC's Investment Committee may extend that period for limited time upon written justification. Failure to rebalance within mandated timelines bars new scheme launches and prohibits levy of exit load on exiting investors until compliance.
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