SEBI to simplify regulatory provisions for index funds, ETFs

SEBI to simplify regulatory provisions for index funds, ETFs


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A ‘passive’ fund is an investment vehicle that tracks a market index or a specific market segment. This section includes passive index funds, exchange-traded funds (ETFs), and funds of funds that invest in ETFs.

Markets regulator SEBI is set to come out with some simplified provisions on mutual funds with a view to reduce the compliance burden for ‘passive funds’ such as ETFs that invest based on market indices. A senior official gave this information on Friday. A ‘passive’ fund is an investment vehicle that tracks a market index or a specific market segment. This section includes passive index funds, exchange-traded funds (ETFs), and funds of funds that invest in ETFs.

Securities and Exchange Board of India (SEBI) whole-time member Anant Baruah said that SEBI is going to ease the provision related to mutual funds to make it easier to invest in options like index funds and ETFs. These provisions will provide greater flexibility to index funds and ETFs and provide transparency, diversification and low cost to investors, he added. Addressing an event of industry body Assocham, Barua said that by easing the regulatory burden, SEBI intends to increase investment in such funds in the Indian mutual fund industry.

Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.



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