SEBI allows Private Equity funds to sponsor Mutual fund schemes  


Mumbai: The Securities and Exchange Board of India (SEBI) on March 29 said it has allowed private equity (PE) funds to sponsor Mutual Fund schemes, and has also permitted the set-up of self-sponsored asset management companies (AMCs). These are among the several decisions taken at the SEBI board meeting held on Wednesday.

“The Board approved amendments to SEBI (Mutual Funds) Regulations, 1996 under which, while strengthening the existing eligibility criteria for sponsors, introduced an alternative route to enable a diverse set of entities to become sponsors of MFs. Such entities, who otherwise may not have been eligible to be sponsors, include private equity funds, with requisite safeguards included in the proposal. The amendments also allow for “Self Sponsored AMCs” to continue the mutual fund business, subject to the said AMCs fulfilling certain criteria. This would give the original sponsor flexibility to voluntarily disassociate itself from the MF without needing to induct a new and eligible sponsor” said a SEBI release.

Amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations :

The SEBI Board has approved the following amendments to LODR Regulations:

i. Introduction of a quantitative threshold for determining ‘materiality’ of events / information.

ii. ii. Stricter timeline for disclosure of material events / information for which decision has been taken in the meeting of the board of directors (within 30 minutes) and which are emanating from within the listed entity (within 12 hours).

iii. iii. Market rumours to be verified and confirmed, denied or clarified, as the case may be, by top 100 listed entities by market capitalization effective from October 1, 2023 and by top 250 listed entities with effect from April 1, 2024.

iv. iv. Disclosure for certain types of agreements binding listed entities.

Streamlining timeline for submission of first financial results by newly listed entities:

The timeline for submission of first financial results by newly-listed entities has been streamlined in order to overcome the challenges in Page 9 of 13 immediate submission of financial results post listing and to ensure that there is no omission in submission of financial results

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