Latest news with #MFRegulations
Time of India
08-07-2025
- Business
- Time of India
Sebi proposes new rule to allow AMCs advise pooled funds
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The market regulator Sebi on Monday has proposed relaxing the broad-basing requirement under Regulation 24(b) of the MF Regulations, which would now allow AMCs to serve pooled non-broad-based funds as well, subject to strong governance and regulatory controls that would address any concerns related to conflicts of interest AMCs are permitted to offer such services only to broad-based pooled assets. Those seeking to serve non-broad-based funds must obtain a Portfolio Management Services (PMS) 24(a) of MF Regulations restricts AMCs from acting as a trustee of any Mutual Fund whereas Regulation 24(b) of MF Regulations restricts AMCs from undertaking any business activity other than like management and advisory services provided to pooled assets including offshore funds, insurance funds, pension funds, provident funds, or such categories of foreign portfolio investor, as may be specified by acknowledged that several AMCs have highlighted that the broad basing requirement under Regulation 24(b) has proven to be a barrier and does not provide a level playing field to AMCs of MFs vis-à-vis other intermediaries engaged in providing management and advisory services to non-broad-based funds.'There are opportunities related to management and advisory of pooled assets, wherein the domain expertise is available with the AMCs. However, restrictions due to the broad basing criteria do not permit AMCs to take up such mandates,' Sebi said in the to the market regulator, in case the broad basing requirement is relaxed, some conflicts are, interalia, likely to arise such as differential fees for pooled non-broad based funds and diversion of resources, risk of contrary trade positions and front running, risk of trading based on inside information of mutual fund operations, and lastly inter business transfer of assets on unfavourable terms to mutual fund addressing the above-mentioned potential conflicts, Sebi has decided to charge differential fees for pooled non-broad-based funds and diversion of resources with two different AMCs would be required to put in place a written policy that clearly defines the roles and responsibilities of various teams involved in fund management, order placement, execution etc., use an automated Order Management System with clear order instructions to employees placing order on behalf of AMCs etc., may be extended to cover investors across all pooled vehicles managed by the AMC, whether broad based or pooled non-broad based AMC may be required to ensure that the activity performed for pooled non-broad-based funds does not emanate from any information obtained through Mutual Funds protect the interest of the mutual fund investors and to avoid any transfer of securities to or from mutual fund schemes on unfavorable terms, it is proposed that the transfer of securities between a pooled non-broad-based fund and mutual fund schemes may not be AMCs and their subsidiaries are only allowed to provide services that are in the nature of management and advisory of pooled funds . AMFI has represented that AMCs and its subsidiaries may be permitted to undertake business activities ancillary to its core fund management operations, such as distribution and marketing services etc., which are related to fund specific ancillary activities proposed by AMFI are - AMC/ its subsidiary to act as Point of Presence (POP) for pension funds as per the regulatory framework specified by Pension Fund Regulatory and Development Authority (PFRDA) and AMC/ its subsidiary to act as global distributor to funds which are managed and/or advised by the AMC or its respect to the request of AMC/ its subsidiary to act as global distributor of funds, AMCs may continue to be allowed to register as distributors through an overseas subsidiary. However, AMCs may be required to ensure that no commission or fees is received for such distribution of direct plans of mutual funds schemes of the has sought public comments on the proposal by July 28.
Economic Times
08-07-2025
- Business
- Economic Times
AMC stocks rise over 3% as Sebi mulls easing mutual fund business norms
Shares of asset management companies (AMCs) such as HDFC AMC, Aditya Birla Sun Life AMC, Nippon Life India AMC, and others rose up to 3.5% on Tuesday after the Securities and Exchange Board of India (Sebi) proposed easing regulations related to mutual fund (MF) business operations. ADVERTISEMENT HDFC Asset Management Company shares rose as much as 3.3% to touch a high of Rs 5,162.30 during the session. Nippon Life India Asset Management also saw strong buying interest, climbing 3.2% to hit Rs 804.95. Aditya Birla Sun Life AMC advanced 3.15% to reach a day's high of Rs 837.65, while UTI Asset Management gained 1.4%, hitting an intraday peak of Rs 1,327.95. In a circular issued on Monday, Sebi proposed relaxing the broad-basing requirement under Regulation 24(b) of the MF Regulations. This would allow AMCs to offer management and advisory services to non-broad-based pooled funds, subject to stringent governance standards and regulatory oversight. Currently, AMCs are permitted to offer such services only to broad-based pooled assets. Those seeking to serve non-broad-based funds must obtain a Portfolio Management Services (PMS) acknowledged that several AMCs have raised concerns that the existing rules limit their ability to compete with other intermediaries offering similar services. The restrictions, they said, have acted as a barrier to entry and hindered access to new opportunities in managing pooled assets—an area where AMCs already possess strong domain expertise.'However, restrictions due to the broad-basing criteria do not permit AMCs to take up such mandates,' Sebi noted in the circular. ADVERTISEMENT Sebi has sought public comments on the proposal by July addition, Sebi has proposed an expansion of permissible activities for AMCs and their subsidiaries, allowing them to undertake operations ancillary to their core business—such as distribution and marketing services. These activities must fall under the regulatory oversight of a domestic or foreign regulator, ensuring that all such operations remain within the ambit of a recognized regulatory framework, the circular added. ADVERTISEMENT The circular has addressed four potential conflicts that may arise if these norms are relaxed. These include: diversion of resources and fees charged, contra-trade and front running, trading based on inside information, and inter-business transfer of assets on unfavourable terms to mutual fund will be required to ensure that resources allocated to pooled non-broad-based funds are proportionate to the fees earned from such funds, and that mutual fund (MF) investors are not made to bear the cost of these products. Sebi may also prescribe a range of fees that AMCs can charge from their pooled non-broad-based funds. ADVERTISEMENT Key personnel responsible for investment decision-making and fund management will need to be segregated. A fund manager may be common only if the investment objectives and asset allocation are the same and replicated across all the funds managed by that individual, the circular stated. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
08-07-2025
- Business
- Economic Times
AMC stocks in focus as Sebi mulls easing mutual fund business norms
Shares of AMCs like HDFC AMC, Aditya Birla Sun Life AMC, and Nippon Life India AMC are likely to be in focus after Sebi proposed easing norms governing mutual fund operations. The regulator plans to relax the broad-basing requirement, allowing AMCs to manage non-broad-based pooled funds without a PMS licence, subject to strict regulatory oversight. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of asset management companies (AMCs) such as HDFC AMC Aditya Birla Sun Life AMC , Nippon Life India AMC, and others will be in focus on Tuesday after the Securities and Exchange Board of India (SEBI) proposed easing regulations related to mutual fund (MF) business a circular issued on Monday, SEBI proposed relaxing the broad-basing requirement under Regulation 24(b) of the MF Regulations. This would allow AMCs to offer management and advisory services to non-broad-based pooled funds, subject to stringent governance standards and regulatory AMCs are permitted to offer such services only to broad-based pooled assets. Those seeking to serve non-broad-based funds must obtain a Portfolio Management Services (PMS) acknowledged that several AMCs have raised concerns that the existing rules limit their ability to compete with other intermediaries offering similar services. The restrictions, they said, have acted as a barrier to entry and hindered access to new opportunities in managing pooled assets—an area where AMCs already possess strong domain expertise.'However, restrictions due to the broad-basing criteria do not permit AMCs to take up such mandates,' Sebi noted in the has sought public comments on the proposal by July addition, Sebi has proposed an expansion of permissible activities for AMCs and their subsidiaries, allowing them to undertake operations ancillary to their core business—such as distribution and marketing services. These activities must fall under the regulatory oversight of a domestic or foreign regulator, ensuring that all such operations remain within the ambit of a recognized regulatory framework, the circular circular has addressed four potential conflicts that may arise if these norms are relaxed. These include: diversion of resources and fees charged, contra-trade and front running, trading based on inside information, and inter-business transfer of assets on unfavourable terms to mutual fund will be required to ensure that resources allocated to pooled non-broad-based funds are proportionate to the fees earned from such funds, and that mutual fund (MF) investors are not made to bear the cost of these products. Sebi may also prescribe a range of fees that AMCs can charge from their pooled non-broad-based personnel responsible for investment decision-making and fund management will need to be segregated. A fund manager may be common only if the investment objectives and asset allocation are the same and replicated across all the funds managed by that individual, the circular stated.
Time of India
08-07-2025
- Business
- Time of India
AMC stocks in focus as Sebi mulls easing mutual fund business norms
Shares of asset management companies (AMCs) such as HDFC AMC , Aditya Birla Sun Life AMC , Nippon Life India AMC, and others will be in focus on Tuesday after the Securities and Exchange Board of India (SEBI) proposed easing regulations related to mutual fund (MF) business operations. In a circular issued on Monday, SEBI proposed relaxing the broad-basing requirement under Regulation 24(b) of the MF Regulations. This would allow AMCs to offer management and advisory services to non-broad-based pooled funds, subject to stringent governance standards and regulatory oversight. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo Currently, AMCs are permitted to offer such services only to broad-based pooled assets. Those seeking to serve non-broad-based funds must obtain a Portfolio Management Services (PMS) licence. Sebi acknowledged that several AMCs have raised concerns that the existing rules limit their ability to compete with other intermediaries offering similar services. The restrictions, they said, have acted as a barrier to entry and hindered access to new opportunities in managing pooled assets—an area where AMCs already possess strong domain expertise. 'However, restrictions due to the broad-basing criteria do not permit AMCs to take up such mandates,' Sebi noted in the circular. Live Events Sebi has sought public comments on the proposal by July 28. In addition, Sebi has proposed an expansion of permissible activities for AMCs and their subsidiaries, allowing them to undertake operations ancillary to their core business—such as distribution and marketing services. These activities must fall under the regulatory oversight of a domestic or foreign regulator, ensuring that all such operations remain within the ambit of a recognized regulatory framework, the circular added. The circular has addressed four potential conflicts that may arise if these norms are relaxed. These include: diversion of resources and fees charged, contra-trade and front running, trading based on inside information, and inter-business transfer of assets on unfavourable terms to mutual fund investors. AMCs will be required to ensure that resources allocated to pooled non-broad-based funds are proportionate to the fees earned from such funds, and that mutual fund (MF) investors are not made to bear the cost of these products. Sebi may also prescribe a range of fees that AMCs can charge from their pooled non-broad-based funds. Key personnel responsible for investment decision-making and fund management will need to be segregated. A fund manager may be common only if the investment objectives and asset allocation are the same and replicated across all the funds managed by that individual, the circular stated. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business Upturn
07-07-2025
- Business
- Business Upturn
Sebi proposes relaxations for AMCs, enabling business expansion beyond mutual funds
By Aditya Bhagchandani Published on July 7, 2025, 21:40 IST The Securities and Exchange Board of India (Sebi) on Monday proposed key relaxations to the Mutual Fund (MF) Regulations, allowing asset management companies (AMCs) to expand their business beyond traditional mutual fund operations. The proposed changes would enable AMCs to manage and advise pooled non-broad-based funds, which may have fewer than 20 investors, without needing a separate Portfolio Management Services (PMS) licence. Previously, AMCs had to secure a PMS licence to cater to such clients. Sebi clarified that AMCs can provide management and advisory services to these funds, regardless of the investment route the foreign entity chooses for investing in India. The regulator also proposed allowing AMCs and their subsidiaries to engage in ancillary activities, such as distribution and marketing services, in addition to fund management. Further, AMCs could act as global distributors for funds managed or advised by themselves or their subsidiaries, and serve as points of presence for pension funds, in line with Pension Fund Regulatory and Development Authority (PFRDA) norms. While the proposed relaxations aim to create new business avenues for AMCs, Sebi emphasized that several guardrails would remain in place to mitigate potential conflicts of interest and ensure clear ring-fencing of activities. Currently, Regulation 24(b) of the MF Regulations limits AMCs to managing and advising pooled assets such as mutual funds, offshore funds, insurance, pension, and provident funds, along with certain foreign portfolio investors. The proposed amendments are now open for stakeholder comments and are expected to further liberalize India's asset management landscape, enhancing AMCs' ability to serve a broader set of investors globally. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
