Stock market regulator, Securities and Exchange Board of India (Sebi) has imposed ban on the premature exits from close-ended funds. It would now be necessary for all close-ended funds to list on the bourses. SEBI board has also announced to extend validity for public offers and rights, from three months to one year on the condition of filing of fresh document with the market regulator. All policy related news can be accessed from the website of the regulator. The new rules would be implemented on all new schemes while existing schemes would not be covered under new rules.

The market has seen a steep downfall in October and many investors suffered huge losses. The regulator doesn't want to repeat the story of October that led to a huge selling spree, causing sudden downfall in the market. The downfall in the market had impacted the investment prospectus of foreign and domestic investors.  

Many fund houses appreciated the decision of SEBI and said that the new rules would make close-ended funds safer but investors will have to bear the listing costs. SEBI has also amended some rules related to the rights issue process and Applications Supported by Blocked Amount (ASBA) for rights offers, to help investors and companies.