Page 19 - Banking Finance June 2024

MUTUAL FUND

were cases where investors were not and Aadhaar were not linked. This im- An exit load of 1% of the applicable
sure if their KYCs, even if done prop- pacted non-resident Indians (NRIs) the NAV will be there if units purchased or
erly, would allow them to continue to most as they are not required to have switched in from another scheme of
invest in stocks, commodities and MFs. an Aadhar card. the fund are redeemed or switched out
on or before 1 year from the date of
The need to reclassify KYCs under vari-
ous categories arose after it was found Samco Mutual Fund allotment. The exit load will be nil if
that KYCs of many investors were still launches Special Opportu- units purchased or switched in from
not updated with PAN and Aadhar, and another scheme of the fund are re-
the linkages were missing. nities Fund deemed or switched out after 1 year
SAMCO Mutual Fund has announced from the date of allotment.
Several of these KYCs were done using
documents like utility bills (electricity, the launch of the Special Opportunities SBI Innovative Opportunities Fund will
telephone), bank account statements Fund. Samco Special Opportunities invest 80-100% in equity and equity
Fund is an open-ended equity scheme
etc, which are no longer accepted as related instruments of companies that
valid documents for KYC compliance by following a special situations theme. seek to benefit from the adoption of
Sebi. The new fund offer or NFO of the innovative strategies and themes (in-
scheme will open for subscription on cluding equity derivatives), 0-20% in
Effective April 1, under the updated other equity and equity-related instru-
KYC compliance process, KRAs have May 17 and will close on May 31. ments (including equity derivatives), 0-
categorised each investor's KYC in The fund is designed to capitalise on 20% in debt securities (including
three categories: validated, registered identifying the market opportunities, securitised debt and debt derivatives)
and on hold. The categorisation was aiming for long-term capital growth and money market instruments includ-
based on availability of PAN, Aadhaar, through undervalued or overlooked ing tri-party repos, and 0-10% in units
email and mobile number of the inves- opportunities, according to a press re- issued by REITs and InvITs.
tors, an official from a KRA said. lease by the fund house.
Tata Mutual Fund merges
MF investors get KYC relief SBI Mutual Fund files draft
as Sebi withdraws PAN- with Sebi for innovative banking & PSU debt fund
Aadhaar link norm opportunities fund with corporate bond fund
Tata Mutual Fund has announced the
Investors who have been struggling to SBI Mutual Fund has filed a draft docu- merger of Tata Banking & PSU Debt
make fresh investments in mutual fund ment with Sebi for an innovative op-
Fund with Tata Corporate Bond Fund.
schemes due to non-compliance with portunities fund. SBI Innovative Oppor- The two schemes will be merged and
the stricter Know Your Client (KYC) re- tunities Fund will be an open ended Tata Corporate Bond Fund will be the
quirements have got some respite. equity scheme following the innova- surviving scheme.
The Securities and Exchange Board of tion theme. The fund house informed about this to
India (Sebi), in a circular on May 14, The investment objective of the scheme its unit holders through a notice-cum
removed the requirement for investors is to provide investors with opportuni- addendum. The merger will be effec-
to link the permanent account number ties for long-term capital appreciation tive from June 15. From this date, Tata
(PAN) with Aadhaar to obtain the 'KYC by investing in equity and equity-related Banking & PSU Debt Fund will cease to
registered' status for mutual fund instruments of companies that seek to exist and the unit holders of the
transactions. This means all investors benefit from the adoption of innovative scheme will become unit holders of
can continue putting strategies and themes.
Tata Corporate Bond Fund.
money into mutual funds without put- The scheme will be benchmarked The fund house mentioned that the
ting up additional documents for the against Nifty 500 TRI. It will be man- exit option of 30 days, at prevailing
time being. aged by Dinesh Balachandran and NAV, without exit load will be given to
As per the tightened KYC norms that Pradeep Kesavan. the unit holders of merging scheme
came into effect on April 1, many in- The scheme will offer regular and di- i.e. Tata Banking & PSU Debt Fund and
vestors could not put money into mu- rect plans both with growth and IDCW to the unit holders of Tata Corporate
tual fund schemes afresh if their PAN options. Bond Fund (i.e. surviving scheme).

BANKING FINANCE | JUNE | 2024 | 17