Charging of additional expenses of upto 0.20% in terms of Regulation 52 (6A) (c)
Summary
The circular clarifies that Asset Management Companies cannot charge additional expenses up to 0.20% for mutual fund schemes where exit loads are not levied or applicable. It mandates the immediate discontinuation of such charges for existing schemes, including close-ended ones, if they are currently being collected. This directive is issued under Section 11(1) of the SEBI Act and Regulation 77 of the Mutual Funds Regulations to protect investor interests.
Text
Regulation 52 (6A) (c) of SEBI (Mutual Funds) Regulations, 1996, allows an AMC to charge additional expenses... not exceeding 0.20 per cent of daily net assets of the scheme.
Mutual Fund schemes including close ended schemes, wherein exit load is not levied / not applicable, the AMCs shall not be eligible to charge the above mentioned additional expenses for such schemes.
existing Mutual Fund schemes including close ended schemes, wherein exit load is not levied / not applicable, shall discontinue, with immediate effect, the levy of above mentioned additional expenses, if any.
Source: SecMarx — Charging of additional expenses of upto 0.20% in terms of Regulation 52 (6A) (c). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.