Page 19 - Banking Finance November 2024

MUTUAL FUND

The regulator is also working on
changes in the Stewardship Code to Sebi tightens insider trading regulations for mutual
make retail investors' voice more pro- funds
nounced in corporate decision-making. Market regulator Sebi has strengthened the regulatory framework in rela-
Managing retail equity investors' tion to prohibition of insider trading in units of mutual funds. According to
money, MFs have a major role to play the new regulations, AMCs shall disclose the details of the holdings of Des-
in decisions put on vote by corporates, ignated Persons of AMCs, trustees and their immediate relatives on an
and SEBI has a lot of expectations on aggregate basis from November 1, 2024 on quarterly basis.
MFs in asserting their role, said Buch. The details of all the transactions in the units of its own mutual funds, above
After the IL&FS crisis, she said SEBI has the threshold amount, shall be reported by the concerned person to the
facilitated a Corporate Debt Market Compliance Officer of AMC within two business days from the date of trans-
Development Fund (CDMDF), which action. The threshold amount is set at a value in excess of Rs 15 lakh in one
has corpus of Rs. 20,000 crore and sov- transaction or a series of transactions over any calendar quarter.
ereign guarantee to raise funds in The above-mentioned transaction should have been executed by the Desig-
times of debt market crisis.
nated Persons of asset Management Company, trustees and their immedi-
In times of bond market crises like ate relatives. This threshold amount is per PAN across all schemes exclud-
IL&FS, CDMDF will prove a backstage ing the exempted schemes.
facility by buying highly rated debt
papers from MFs to provide liquidity
for meeting redemption pressure. 500, with a minimum of one instal- expenses that track the total return of
ment.
Nifty 500 Momentum 50 Index, sub-
NFO Alert: Zerodha Mu- The scheme will invest 95-100% in units ject to tracking errors.
of Gold Exchange Traded Funds (ETFs) The scheme will be benchmarked
tual Fund launches Gold and 0-5% in debt securities and money against Nifty 500 Momentum 50 Index
ETF FoF market instruments. The investment TRI. The scheme will be managed by
strategy of the scheme is to passively
Zerodha Mutual Fund has announced Abhishek Jain.
the launch of the Zerodha Gold ETF FoF, invest in Gold ETFs, remaining invested The exit load will be nil. The minimum
an open-ended fund-of-funds scheme in the underlying scheme regardless of
that invests in units of Gold ETFs. The the prevailing gold price or future out- investment will be Rs 500 and in mul-
new fund offer (NFO) for the scheme look for this asset class. tiples of Re 1 thereafter. Units will be
will open for subscription on October allotted in the whole figures and the
25 and will close on November 8. Groww Mutual Fund files balance amount will be refunded, even
The scheme's investment objective is draft document with Sebi if it falls below the minimum amount.
to seek capital appreciation by invest- for Nifty 500 Momentum Mirae Asset Mutual Fund
ing in units of Gold ETFs. It will be
benchmarked against the domestic 50 ETF revises exit load duration
price of physical gold and will be man- Groww Mutual Fund has filed a draft of 5 FoFs
aged by Shyam Agarwal and Kedarnath document with Sebi for Nifty 500 Mo-
Mirajkar. mentum 50 ETF Fund, an open-ended Mirae Asset Mutual Fund has revised
scheme tracking the Nifty 500 Momen- the exit load period of its five fund of
The minimum application amount is Rs
tum 50 Index - TRI. funds (FoFs). The changes in exit load
500, with subsequent investments in will be effective from October 30. The
multiples of Re 1. The minimum re- The investment objective of the
demption amount shall be 'any scheme will be to generate long-term fund house stated these changes on a
amount' or 'any number of units' as capital growth by investing in securities notice cum addendum.
requested by the investor at the time of the Nifty 500 Momentum 50 Index The exit load of four FoFs has been
of redemption. For monthly SIPs, the in the same proportion/weightage reduced to 15 days from the existing
minimum application amount is Rs with an aim to provide returns before three months whereas for one fund,

BANKING FINANCE | NOVEMBER | 2024 | 17