India’s securities regulator has launched a new framework for passively managed funds, such as exchange-traded funds and index funds.
According to the Securities and Exchange Board of India (Sebi), the Mutual Funds Lite framework is designed to facilitate easier entry for passively managed funds into the mutual fund market.
Under the framework, the net worth, track record, and profitability requirements for sponsors would be lowered, enabling more entities to enter the mutual fund market, Sebi says in a statement on October 2.
The regulator adds that the approval process for launching new passive mutual fund schemes will be streamlined and simplified. Disclosure and compliance requirements will also be eased.