The Securities and Exchange Board of India (SEBI) introduces significant amendments to the Mutual Funds Regulations, 1996, which will take effect on April 1, 2025. These changes include a requirement that asset management companies (AMCs) invest a portion of employee remuneration in mutual fund schemes, tailored to specific roles within the organization.
Additionally, AMCs must conduct stress tests on selected schemes, disclosing the results to foster greater transparency. The regulations also mandate timely capital deployment from new fund offers (NFOs) and stipulate how charges and commissions for mutual fund scheme distribution must be structured. These amendments aim to bolster accountability in the mutual fund sector, prompting industry stakeholders to adapt to these new standards.
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