Mutual funds will stop accepting fresh investments in over 100 schemes with Systematic Investment Plan (SIP) option, as market regulator, the Securities and Exchange Board of India (Sebi) has asked fund houses to move to 'one plan, one scheme' structure.
According to Sebi's guidelines, the single plan structure would apply to all new schemes with effect from today, while existing schemes with multiple plans (based on investment amount) can accept fresh subscriptions only under one plan.
Other plans will continue till the existing investors remain invested in the plan.
SIPs provide mutual fund investors with an option to put in as low as Rs 100 per month and have become quite popular in recent years.
While the fund houses would continue to offer SIP options in their schemes, they cannot launch multiple investment plans for one single scheme. The move is part of reform measures taken by Sebi, coming into effect today, to simplify mutual fund investments and re-energise the sector. As a result, the National Stock Exchange said in a circular that a total of 126 schemes would be discontinued for subscription/SIP registration, with regard to Sebi guidelines.
