Introduction of “Flexi Cap Fund” as a new category under Equity Schemes
Summary
SEBI introduces 'Flexi Cap Fund' as a new category under Equity Schemes to provide flexibility to mutual funds. The scheme requires a minimum investment of 65% in equity and equity-related instruments across large, mid, and small cap stocks. Mutual Funds may convert existing schemes to this category subject to regulatory compliance and must adopt uniform naming conventions.
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An open ended dynamic equity scheme investing across large cap, mid cap, small cap stocks with minimum investment in equity & equity related instruments - 65% of total assets
The AMC shall ensure that a suitable benchmark is adopted for the Flexi Cap Fund
For easy identification by investors and in order to bring uniformity in names of schemes for a particular category across Mutual Funds, the scheme name shall be the same as the scheme category
Mutual Funds have the option to convert an existing scheme into a Flexi Cap Fund subject to compliance with the requirement for change in fundamental attributes of the scheme in terms of Regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996
Scheme under the aforesaid mentioned new category can be launched with effect from the date of this circular
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
Source: SecMarx — Introduction of “Flexi Cap Fund” as a new category under Equity Schemes. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.