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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....panies (AMCs)/ All Trustee Companies/ Board of Trustees of Mutual funds/ Association of Mutual Funds in India (AMFI) Madam/ Sir, Subject: Ease of doing business - Streamlining of prudential norm for passive schemes regarding exposure to securities of group companies of the sponsor of Mutual Funds 1. A working group was constituted by SEBI to review the present regulatory framework u....

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....excess of 25 per cent of the net assets of the scheme, except for investments by equity oriented exchange traded funds (ETFs) and Index Funds and subject to such conditions as may be specified by SEBI. Accordingly, it has been decided as under: 3.1. Equity oriented ETFs and Index Funds, based on widely tracked and non-bespoke indices, can make investments in accordance with the weightage of the....

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....sed on the criteria specified at paragraph 3.2 above, the list of indices as on June 30, 2024 is provided at Annexure A. 3.5. Passive schemes based on underlying indices, other than those indices mentioned at Annexure A of this circular, shall be rebalanced within 30 business days from the date of issuance of this circular. 3.6. In case the portfolios of such schemes are not rebalanced withi....

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....n 44 (1), clause 9(c) of Seventh Schedule and Regulation 77 of the MF Regulations to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 5. This circular is available at www.sebi.gov.in under the link "Legal →Circulars". Yours faithfully, Lakshaya Chawla Deputy General Manager +91-22-26449369 lakshayac@seb....