SEBI extends timeline for implementation of direct transaction in ETFs through AMCs
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- Last Updated on 30 July, 2022
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Circular no. SEBI/HO/IMD/DF2/CIR/P/2022/102, Dated: 28.07.2022
The SEBI vide Circular No. SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated May 23, 2022, dated May 23, 2022 had issued the provisions w.r.t the development of passive funds.
In order to enhance liquidity in units of Exchange Traded Funds (ETFs) on the Stock Exchange platform, the SEBI prescribed that in respect of units of ETFs, direct transactions with Asset Management Companies (AMCs) shall be facilitated for investors only for transactions above a specified threshold of Rs. 25 Crores. The deadline for implementing the same was July 1, 2022.
Various feedbacks were received from the stakeholders expressing certain challenges w.r.t the implementation of the provision prescribing execution of direct ETF transactions with AMCs. Considering the same, the SEBI has extended the deadline for direct ETF transactions above a specified threshold of Rs. 25 crores with AMCs to November 01, 2022.
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