Restoration of relaxed timelines w.r.t. validity of observation letter pertaining to Mutual Funds
Summary
SEBI restores the validity period of observation letters for launching New Fund Offers (NFOs) to six months. A transitional provision allows existing observation letters to remain valid for one year from their issuance date. This circular is issued under Section 11(1) of the SEBI Act and Regulation 77 of the Mutual Funds Regulations.
Text
extended the validity period of observation letter issued by SEBI for launch of all New Fund Offers (NFOs) from six months to one year from the date of SEBI letter.
restore the validity period of observation letter issued by SEBI to six months to launch NFOs as specified in SEBI circular SEBI/IMD/CIR No.5/126096/08 dated May 23, 2008.
for all schemes (NFOs) where SEBI has already issued observation letter and NFOs are yet to be launched, the schemes shall be launched within one year from the date of SEBI observation letter.
This circular shall come into force with immediate effect.
issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996.
Source: SecMarx — Restoration of relaxed timelines w.r.t. validity of observation letter pertaining to Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.