Market watchdog the Securities and Exchanges Board of India (Sebi) today shortened the period within which mutual fund (MF) schemes can be subscribed and refunds can be claimed, a move that will safeguard investors from market volatility.
The Sebi has slashed the calendar for availing of MF schemes and seeking refunds, from 87 days to just 20 days now.
All MF schemes, other than the (initial) offering period of any equity-linked savings schemes, shall now be open for subscription for more than 15 days, while any amount refundable shall be refunded within "five working days" from the date of closure of subscription list, the regulator said in a notification.
"Sebi's move will help MF investors safeguard their money and associated interest costs, especially in volatile market conditions," SMC Capitals Equity Head Jagannadham Thunuguntla said.
The regulator also said asset management companies will have to issue unit certificates, or a statement of accounts, within "five working days" specifying the number of units allotted to an applicant. Further, Sebi exempted AMCs launching schemes on no-load basis from paying any fee.