The Securities and Exchange Board of India on 28th October 2022, based on the feedback received from stakeholders, it has decided that the clause 2(IV)(A) of the circular on development of passive funds shall be applicable with effect from May 01, 2023.
Clause 2(IV) (A) deals with direct transaction in ETFs (Exchange Trade Fund) through AMCs.
In order to enhance liquidity in units of ETFs on stock exchange platform, it has been decided that direct transaction with AMCs shall be facilitated for investors only for transactions above a specified threshold. In this regard, to begin with any order placed for redemption or subscription directly with the AMC must be of greater than INR 25 Cr. The aforesaid threshold shall not be applicable for MMs and shall be periodically reviewed.