SEBI Set For Speedy Clearance Of MF Schemes

The Securities and Exchange Board of India (SEBI) proposed a fast track mechanism for clearance of mutual fund schemes.

In a draft scheme SEBI has invited public comments till 15 January 2008. As per the draft, Asset Management Companies (AMCs) will have to file final offer document with SEBI as against the current practice of submitting draft offer document.

After receiving the confirmation of receipt of the document from SEBI, the AMC will be free to launch the scheme. The regulator, however, will retain the right to advise amendments. The aim of adopting the new procedure is to squeezing the existing process without compromising on the quality of disclosures to investors.