SEBI eases norms for Mutual Fund (MF) investments in derivatives
SEBI issued a Circular dated 20.02.2017 stating that Existing mutual fund schemes will not require approval of a majority of unit holders to invest in derivatives segment provided the investors are given the exit option.
Among other conditions, the relaxation, effective immediately, would be in place only if the mutual fund scheme concerned provides the investors 30 days time to exit the scheme without any charges.
It would be applicable for existing mutual funds, whose Scheme Information Documents (SIDs) do not envisage investments in derivatives.
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The latest decision has been taken in view of the challenges involved in seeking the consent of a majority of unit holders due to their vast geographical spread, according to the regulator.
{Source: Business Standard
Copy of Circular can be accessed at below link: