In a move to add depth and variety to India's investment landscape, the Securities and Exchange Board of India (SEBI), in its board meeting, announced the introduction of a new asset class: Mutual Funds Lite (MF Lite). This new investment product aims to provide investors with a professionally managed and well-regulated option for higher ticket size investments. The relaxed framework for entities launching passive mutual fund schemes includes hiving off passive schemes to a different group entity, while brokers can offer access to a new settlement cycle allowing same-day trades for select top 500 scrips.
SEBI's New Initiatives: Mutual Funds Lite and Enhanced Brokerage Framework
Background
The Securities and Exchange Board of India (SEBI) is the regulatory body for the Indian securities and capital markets. It plays a crucial role in protecting the interests of investors, regulating the financial markets, and promoting the development of the Indian economy.
Mutual Funds Lite (MF Lite)
In a bid to enhance investment options and cater to the growing demand for higher ticket size investments, SEBI has introduced Mutual Funds Lite (MF Lite). This new asset class aims to provide investors with a well-regulated and professionally managed investment product.
MF Lite schemes will be structured as passive funds, which track a specific index or benchmark. This approach reduces the need for active management and lowers the expense ratio for investors. The minimum investment limit for MF Lite schemes has been set at INR 50,000.
Enhanced Brokerage Framework
SEBI has also implemented changes to the brokerage framework for passive mutual fund schemes. Entities launching such schemes can now hive off passive schemes to a different group entity. Additionally, brokers can now offer access to a new settlement cycle that allows same-day trades for select top 500 scrips.
Top 5 FAQs
Q1: What is the purpose of Mutual Funds Lite? A: MF Lite aims to provide investors with a well-regulated and professionally managed investment option for higher ticket size investments.
Q2: How do MF Lite schemes differ from traditional mutual funds? A: MF Lite schemes are structured as passive funds, which track a specific index or benchmark. This approach reduces the need for active management and lowers the expense ratio for investors.
Q3: What is the minimum investment limit for MF Lite schemes? A: The minimum investment limit for MF Lite schemes has been set at INR 50,000.
Q4: What are the changes to the brokerage framework for passive mutual fund schemes? A: Entities launching passive mutual fund schemes can now hive off passive schemes to a different group entity. Additionally, brokers can offer access to a new settlement cycle allowing same-day trades for select top 500 scrips.
Q5: What are the potential benefits of these SEBI initiatives? A: These initiatives are expected to enhance investment options, promote financial inclusion, and boost market liquidity.
The Pune Regional Transport Office (RTO) flying squad has been conducting inspections on school vehicles and has found that nearly 35% of the vehicles were not compliant with transport norms. Asaram Bapu, a controversial religious leader serving a life sentence for rape, was recently granted a 7-day parole to undergo treatment at a hospital between Mumbai and Pune. According to the hospital authorities, he has since completed his treatment and was discharged on Monday.
Savitri Jindal, the head of the Jindal Group, has won the Hisar Assembly seat for the third time as an independent candidate, defeating her BJP and Congress rivals. Her immense personal wealth, estimated at Rs 3.65 lakh crore, makes her not only the richest woman in India but also the fifth-richest individual in the country. Her leadership of the Jindal Group has earned her international recognition and she is now thanking the people of Hisar for their continued support.
Ratan Tata, the renowned industrialist and philanthropist, took to social media to clarify rumors of his hospitalization. He thanked the public for their concern but urged them to refrain from spreading misinformation, as he is only undergoing regular medical checkups. The 83-year-old business tycoon is known for his simplicity and humility and has played a crucial role in the growth and restructuring of Tata Group.
In a move to protect its domestic EV market, the US government has decided to impose tariffs on Chinese-made electric vehicles starting from next month. This decision comes as a result of concerns about unfair trade practices and the need to support local manufacturers. The tariffs, which could be as high as 45%, will be in effect for five years. This is a clear sign of the tense relations between the US and China, particularly in the automotive industry which plays a significant role in both economies.
The Securities and Exchange Board of India (Sebi) has implemented a new rule for credit of bonus shares in demat accounts of investors, to be in force from October 01, 2024. NBCC's bonus share issue's record date is Monday, October 07, 2024, with the Ex Bonus Date also on the same day. However, since all stocks in India now follow T+1 settlement cycle, only those investors who have bought NBCC shares latest by Friday, October 04, 2024 will be eligible for the bonus issue. Stay updated and follow News24 for the latest news and updates on the NBCC bonus share issue.
Business tycoon Ratan Tata breaks his silence and addresses rumors surrounding his health and hospitalization. He assures the public that there is no cause for concern and explains that he is undergoing medical check-ups due to his age and related conditions. This news comes as a relief to his fans and followers, who have been worried about his well-being.
After reports of Ratan Tata's hospitalisation, the former chairman of Tata Sons took to social media to clarify and dispel any concerns about his health. In his statement, he assured the public that the rumours were untrue and that he was undergoing medical check-ups for age-related conditions. Known for his contributions to business, society, and philanthropy, Tata remains in good spirits and continues to oversee the Tata Trusts.
The ECOWAS Commission, in collaboration with the African Development Bank, will be implementing a US$15 million bridge project to connect Liberia and Côte d'Ivoire. The project aims to promote cross-border trade and ease difficulties in movement along the West African region. The commissioning ceremony took place at the Plulo Border and brought together representatives from both governments and regional stakeholders. The African Development Bank will also finance a US$258 million bridge over the Cavalla River, signaling a commitment to solidifying regional trade and integration.
The Indian Navy has announced a recruitment drive for its executive and medical branches for the SSR (Med Asst) in November 2024 batch. Interested and eligible candidates can apply online before September 17, 2024. The detailed advertisement and application process can be found on the official Indian Navy website. Candidates should have qualified 10+2 examination with specified subjects and will receive a stipend during initial training, followed by placement in Level 3 of Defence Pay Matrix upon successful completion. Stay updated with the latest job notifications, preparations and results by downloading the Jagran Josh Sarkari Naukri App.
A heated debate erupted between Ola Electric founder Bhavish Aggarwal and comedian Kunal Kamra on Twitter regarding the service quality of Ola's electric scooters. Kamra criticized the company for neglecting the complaints of consumers, while Aggarwal fired back by challenging Kamra to come and help improve the service network. The exchange quickly turned personal, with Kamra calling Aggarwal arrogant and Aggarwal mocking Kamra's comedy career. Many Ola Electric customers also joined in, expressing their dissatisfaction and urging Aggarwal to address their concerns.