Equity ETFs & Index Funds Can Invest in Group Companies of Sponsor, With a Cap of 35% of the Scheme’s NAV
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- Last Updated on 10 July, 2024
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Circular No. SEBI/HO/IMD/IMD-PoD-2/P/CIR/2024/098, Dated 08.07.2024
Earlier, SEBI allowed equity oriented exchange traded funds (ETFs) and Index Funds to make any investment in the listed securities of group companies of the sponsor which is in excess of 25% of the net assets of the scheme. Now, SEBI has decided that equity-oriented ETFs & Index Funds, based on widely tracked and non-bespoke indices, can make investments based on the weightage of the constituents of the underlying index. However, such investments shall be capped at 35% of the NAV of the scheme.
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