The 18A Cii Mutual Fund Summit 2025
The Securities and Exchange Board of India (Sebi) is Working on A Review of Mutual Fund (MF) Regulations, POSIBLE INCLUDING Relaxations on Clause 24 (b) Restrictions on Business Activities, The Scheme Categorization Framework, director and Otheror and Otheror and Otheroris and Otheroris and Otheroris Exororis and Otheroris and Othernor, and Otheror Exorment and Otheror, and Otheror, and Otheror Exormente and Othernor, and Otheror, and others, and Otheroris and Othernor, and Otheror, and Otheroris Exechejej and Otheror.
Speaking in the 18 of the ICITh Mutual Fund Summit 2025, Kumar said: “We are doing a significant review of regulation 24. Those who are familiar with regulation can remember that this is the only respective clause of the entire regulation of the mutual fund.
Clause 24 (b) of the regulations of mutual funds of Sebi restricts that asset management companies carry out any other commercial activity, except activities in the nature of portfolio management services, offshore fund management, advisory services and other activities such as financial services that may allow the Sebi Board, and only through subsidiaries.
It also describes the minimum number of investors, the requirements of the fund manager and the limits within the corpus of the fund for funds grouped in the high seas. Sebi is expected to be possible to relax some of these requirements for compliance to be less onerous.
MF scheme categorization
The regulator aims to consolidate the MF categories and simplify the names and classifications of schemes so that they are more accessible to investors beyond the 30 main cities. Sebi has urged the association of mutual funds in India (AMFI) to find ways to simplify the nomenclature and create adequate differentiation within the 36 prescribed categories, such as great capitalization, Cap Mid, multiple CAP, among others.
Under the new president of Sebi, Tuhin Pandey, the approach has changed to reexamine many existing regulations to promote business facility and optimal regulation, with an focus on working together in the industry, Kumar said.
The official also said that the regulator is looking to solve certain problems and challenges that face the industry in the existing institutional mechanism, as well as the rules of the skin in the game for fund managers.
Similarly, Sebi is also examining different models regarding issues about the total expenses relations of the MF (TER) schemes and “finding the best way to follow,” Kumar said.
He also pointed out the lack of penetration of the mutual fund industry despite regulatory relaxations and initiatives such as Choti Sip and Tarun Yojana to help the mutual fund industry to expand.
Posted on April 15, 2025