Fund houses ready NFOs as ban nears end, say will comply with new norms

In a circular in October 2021, Sebi had stated that pooling of funds or units by stockbrokers and clearing members in any form or manner shall be discontinued for all mutual fund transactions

Asset management companies (AMCs) are preparing to launch new fund offers (NFOs) as the three-month embargo nears its end. On Friday, at least five AMCs filed offer documents with capital markets regulator Securities and Exchange Board of India (Sebi) seeking its permission to launch new schemes.

Since April there have been no new NFOs because of the delay in the implementation of the new norms around pooling of funds.

“We think the industry has now complied with the new regulations. The mutual fund industry might once again see a series of NFOs in the days to come,” said the chief