Pause in mutual fund NFO until July 1 after 'pool account' rules kick in

The move, directed by Sebi, is to ensure "undivided attention" for proper execution of the new norms

The Rs 39-trillion domestic mutual fund industry will have to slam the brakes on new scheme launches, until the rules pertaining to pool accounts get implemented.

The Securities and Exchange Board of India (Sebi) has written to mutual fund industry body Association of Mutual Funds of India (Amfi), directing asset management companies (AMCs) to launch new fund offers (NFOs) only after the circulars on pool accounts are implemented. This is to ensure “undivided attention” for the proper execution of the new norms.

NFOs have turned out to be a big source of asset mobilisation for the industry. For instance, the