Clause 2(IV)(A) under the new framework mandates all purchase and redemption orders directly placed with the fund house have to be greater than Rs 25 crore
Topics Exchange-traded funds
The markets regulator has deferred implementation of a key clause in the new framework on exchange-traded funds that came into effect this month.
Clause 2(IV)(A) under the new framework mandates all purchase and redemption orders directly placed with the fund house have to be greater than Rs 25 crore.
Those below this threshold have to mandatorily take place on the stock exchange platform.
“Feedback was received from stakeholders expressing certain challenges with respect to implementation of the above clause. Considering the same, it has been decided that the applicability of Clause 2(IV)(A) of the circular shall be November 1,” it said in a circular.
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