Clause 2(IV)(A) of the new framework states that all buy and redeem orders placed directly with the fund house must be greater than Rs 25 crore
exchange traded funds
The market regulator has postponed the implementation of a key clause in the new framework on exchange-traded funds which came into force this month.
Clause 2(IV)(A) of the new framework stipulates that all purchase and redemption orders placed directly with the fund house must be greater than Rs 25 crore.
Those below this threshold must take place on the stock market.
“Comments were received from stakeholders expressing some challenges with respect to the implementation of the above clause. Considering the same, it has been decided that the applicability of clause 2 (IV) (A) of the circular will be on November 1,” he said in a circular.
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First published: Thursday, July 28, 2022. 9:43 PM IST