SEBI for no charge varying exit loads by MFs

SEBI for no charge varying exit loads by MFs Market regulator, the Security and Exchange Board of India (SEBI), while simplifying the formats of documents and Memorandum of key schemes, has restrained fund houses from charging varying loads based on the value of investment.

However, Fund houses may charge the differential exit load up to 7 per cent by a fair manner without affecting existing unit holder. SEBI has asked for parity among all unit holders while charging loads based on the amount of subscription.

The regulator said: "Mutual funds are making distinction between unit holders by charging differential exit loads based on the amount of subscription. In order to have parity among all classes of unit holders, it has now been decided that no distinction among unit holders should be made, based on the amount of subscription while charging exit loads."




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