Sebi formalises graded exit load structure on liquid funds

In a letter, it informed the Association of Mutual Funds in India (Amfi) that it approved of the proposal on graded exit loads made by the industry body

The Securities and Exchange Board of India (Sebi) on Tuesday formalised a graded exit load structure on liquid funds.

A Sebi letter informed the Association of Mutual Funds in India (Amfi) that it approved of the proposal on graded exit loads made by the industry body.

According to the structure, one-day holding in liquid fund would draw an exit load of 0.007 per cent, two-day would lead to 0.0065 per cent exit load, followed by 0.006 per cent, 0.005 per cent, and so on, till seventh day.

Sebi in its communication said that since interest rate scenario can change overtime,