Asset Management Companies (AMCs) are hard at work getting ready to provide new mutual fund schemes starting the following month. The market watchdog SEBI’s three-month ban on the offering of new funds is about to expire.
Up till the new system is put in place, the Securities and Exchange Board of India (SEBI) has put an embargo on the launch of new fund offers. The new system must be in place by July 1 according to a deadline set by SEBI.
Mutual fund businesses are prepared to introduce new investment plans as the ban period is coming to an end. At least six AMCs have this month filed paperwork to Sebi for clearance to start new schemes.
A dozen companies simultaneously submitted documentation to SEBI for 15 schemes between April and May. AMC raised Rs 1.08 lakh crore in the fiscal year 2021–2022 by putting forth 176 new fund offers. In the year 2020–2021, 84 new fund offerings were released prior to this.
However, only four fund offerings have been made in the current fiscal year 2022–2023, and only Rs 3,307 crore have been raised as a result.
It appears like the new fund offering season is about to resume from the following quarter, according to Swapnil Bhaskar, Head of Strategy at Neo, a banking platform targeted at young investors. AMC companies have been working for the past two quarters setting up for compliance with SEBI directives.
In addition to this, the continuous market volatility also played a role in the new offering’s stalling.