Advertisement

HindustanTimes Fri,25 Apr 2014

OMG to mutual fund deadlines

Hindustan Times   May 03, 2013
First Published: 23:05 IST(3/5/2013) | Last Updated: 23:08 IST(3/5/2013)

Initial subscription period (15 days)
When your fund house launches a scheme, you can invest in it for a limited period of time, to begin with. This period is called the initial offering period. As per the Securities and Exchange Board of India’s (SEBI) rules, your fund house’s new fund offer (NFO) has to be open for a maximum of 15 days.

Advertisement

The recently launched Rajiv Gandhi Equity Savings Scheme (RGESS) is an exception. These schemes can be open for subscription for up to 30 days.
Note that all MFs, except RGESS, have to allot units and dispatch account statements within five working days after the NFO period gets over.

Time to get Sebi approval for new launches (21 days)
Before your fund house launches a new scheme, it needs to get SEBI’s approval. It, therefore, files a draft offer document with SEBI, which inspects it thoroughly and asks for clarifications, if any, from the fund house. Your fund house is then supposed to answer SEBI’s queries.
SEBI’s MF guidelines say that if the fund house doesn’t hear anything from SEBI for 21 days, the fund house should go ahead with launching the scheme. But the reality is a bit different. Chiefs of several fund houses have told us in the past that even though SEBI doesn’t get back in 21 days and may, therefore, take more time.

Dispatch of dividend warrants (30 days)
Once your fund house declares a dividend, it is supposed to dispatch the dividend warrants within 30 days of the declaration of dividend.
Kayezad E Adajania

Advertisement
more from Banking

CCEA gives nod for IDFs to take over bank loans

In a move that could boost the cash-starved infrastruc­ture sector, the Cabinet Committee on Economic Affairs on Tuesday gave its clearance for infrastructure debt funds (IDFs) to take over existing bank loans.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved