5 months ago

Sebi's fixed timelines to address delays in NFO fund deployment

NEW DELHI : In a pivotal regulatory proposal, the Securities and Exchange Board of India has outlined fixed timelines for deploying funds collected through new fund offers. Why Sebi is setting a deployment timeline Historically, delays in fund deployment have raised concerns, with investors expecting their contributions to be promptly invested according to each fund’s objectives. Sebi’s motivation behind a fixed timeline The proposed timeline is part of Sebi’s broader agenda to strengthen mutual fund regulations, particularly for NFOs, where delays in fund deployment have caused investors to miss market opportunities. Sebi’s approach differs by prioritizing fixed deployment periods tailored to the expectations and regulatory needs of India’s growing mutual fund market, where structured timelines are seen as essential to reinforce investor trust. Sebi’s commitment to investor protection The proposed deployment timeline exemplifies Sebi’s ongoing mission to strengthen regulatory oversight in India’s financial markets.

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