Sebi allows active to passive ELSS switch for asset management companies

But regulator says AMCs must shut existing active scheme before offering a passive one

The Securities and Exchange Board of India (Sebi) has allowed asset management companies (AMCs) that have actively-managed equity linked savings schemes (ELSS) to launch a passive ELSS. But the AMCs can do so only after they close the existing active scheme.
 

This comes at the beginning of the most critical quarter for ELSS schemes, which are used by investors to avail themselves of tax deductions. Passive schemes have been stealing a march over active schemes lately thanks to their relatively lower costs and better performance.

Illustration: