SEBI extend timeline for implementation of Swing pricing framework for mutual fund schemes

The SEBI vide circular dated 24 February 25, 2022 has extended timeline for implementation of Swing pricing framework for mutual fund schemes. Based on the request received from AMFI, it has been decided to extend the implementation date of the provisions of the framework to May 1, 2022. For normal times, the swing pricing framework is stipulated as under:

1. AMFI shall prescribe broad parameters for determination of thresholds for triggering swing pricing which shall be followed by AMCs. AMFI shall also prescribe an indicative range of swing threshold to the industry for normal times.
2. Additionally, AMC may be allowed to have other parameters, if it desires so, considering the nature and characteristics of the mutual fund scheme.
3. For normal times, AMCs shall decide on the applicability of swing pricing and the quantum of swing factor depending on scheme specific issues.
4. All of the above shall be disclosed by the AMC in its Scheme Information Document (SID).