Sebi introduces timelines for NFO fund deployment, eases AMC employee interest alignment rules

New Delhi, Dec 19 Markets regulator Sebi has decided to introduce timelines for deploying funds raised through New Fund Offers by asset management companies and relaxed regulatory framework regarding the alignment of AMC employees' interests with those of unitholders. Regarding deployment timelines, Sebi said that fund managers must deploy funds collected during an NFO as per the specified asset allocation of the scheme, typically within 30 days. "The new framework is aimed at encouraging AMCs to collect only as many funds in NFOs as can be deployed in a reasonable period of time since in the open-ended funds investors always have the option to enter the scheme at a later date at the prevailing NAV," Sebi said. To facilitate ease of doing business for asset management companies' employees, Sebi has decided to relax the regulatory framework pertaining to the 'Alignment of interest of AMC employees' with unitholders.