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SEBI, the regulator issued a circular on Tuesday dated April 25, 2023, outlining modifications in the requirement of filing of offer documents by mutual funds.
As part of the go green initiative, it has been decided that AMCs shall file all final offer documents (final SID and final KIM) only digitally by emailing the same to a dedicated email id. viz: imdsidfiling@sebi.gov.in and there would be no requirement of filing of physical copies of the same with SEBI. This is a partial amendment of the aforementioned circular.
Having said that, based on the consultation with Association of Mutual Funds in India (AMFI), such submission of all final SID and KIM in digital form shall be made at least 2 working days prior to the launch of the new fund offer.
In addition to this, SEBI stated, “To safeguard the interests of investors in securities market, it has been decided that all new fund offers shall remain open for subscription for a minimum period of three working days.”
This provision by SEBI primarily appears to be for debt-oriented NFOs, where in case of FMPs the subscription period can be as low as one day. NFOs with subscription period of one-day are rare and may only be open to a certain group of investors; as a result, different retail investors may not be eligible to participate. Thus, this is a welcoming change and in the best interest of investors.
Do note that, these provisions are applicable with effect from May 1, 2023.