Monday, March 16, 2009

183 mutual fund schemes pending with SEBI

Change in guidelines, pending responses to queries from the Securities and Exchange Board of India (SEBI) and adverse market conditions have delayed the launch of total 183 mutual fund schemes, reports Business Standard. Out of the 183 schemes 68 schemes of the fixed maturity plans (FMPs) category have been shelved because of a change in guidelines in the third quarter of 2008-09. Of the remaining schemes, SEBI still has to approve around 70-75 schemes, despite their offer documents being filed since April 2008.
SEBI has said that a large number of applications were sent back with queries, but the fund houses did not come back with a response. But certain fund houses alleged that the market regulator has not approved their schemes within the stipulated period of 21 days from the date of filing the offer document and that some of these offer documents were filed up to 11 months back.
Since April 2008, about 290 offer documents were filed with SEBI, which charges a fee of Rs 100,000 for filing an offer document. However, if the fund house does not launch the fund within a six-month period of getting the approval, the application lapses. The fund house is then required to file a fresh offer document.

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