SEBI Extends Deadline For Rules On Direct ETF Transactions Through Asset Management Companies
This is the second time SEBI has extended the deadline, earlier extended to Nov.1 from original deadline of July 1.
Capital markets regulator SEBI on Friday extended the deadline to May 1, 2023, for implementation of the Rs 25 crore-threshold rule for direct ETF transactions with asset management companies.
This is the second time the Securities and Exchange Board of India has extended the deadline. Initially, the rule was to come into force from July 1 and the same was extended till Nov. 1.
Based on further feedback received from stakeholders, it has been decided that the rule will be applicable with effect from May 1, 2023, the regulator said in a circular.
To enhance liquidity in units of exchange traded funds on stock exchange platforms, SEBI decided that direct transactions with asset management companies will be facilitated for investors only when the transaction amount is greater than Rs 25 crore.