Overview

• SEBI’s July 7 consultation proposes amending Regulation 24(b) to let AMCs manage pooled non-broad-based funds under stricter governance controls.
• AMCs and their subsidiaries could act as Points of Presence for pension schemes and market direct mutual fund plans overseas without earning commissions.
• The regulator recommends fee caps and floors, segregation of fund management teams, a six-month contra-trade rule and a ban on intra-fund transfers to curb conflicts.
• Industry bodies including AMFI have long argued that the broad-basing requirement limits AMC competitiveness and revenue-diversification opportunities.
• Public comments on the proposed amendments are open until July 28 before SEBI finalizes the new mutual fund framework.