Minimum IPO offloading not applicable to MFs with trust deeds approved: SEC
Friday, 22 January 2010
FE Report
The mutual funds (MFs), trust deeds of which were approved before November 5 last, will not come under the purview of the finance ministry's decision that a mutual fund must offload minimum 50 per cent of its units through Initial Public Offering (IPO), the stock market regulator has said.
"The mutual funds, which submitted their prospectuses before November 5 and their trust deeds were also approved before that date, will not be considered under the recent order of the finance ministry," Securities and Exchange Commission (SEC) member Mansur Alam has told the FE.
On November 5 last, the finance ministry in a meeting with the SEC decided that from now on a mutual fund must offload minimum 50 per cent of its units through the IPO.
The trust deeds of three mutual funds-Phoenix Finance First Mutual Fund, ICB AMCL Third NRB Mutual Fund, and Islamic Finance and Investment Limited Mutual Fund One-were approved by the SEC before November 5.
According to the SEC member, in case of approving prospectuses of the three funds, they are not required to offload minimum 50 per cent of their units through the IPO. These funds would be treated like other funds, which already got the SEC nod and entered the market.
The SEC member, however, said after final scrutiny they could say which of the three funds would get the SEC nod.
The mutual funds (MFs), trust deeds of which were approved before November 5 last, will not come under the purview of the finance ministry's decision that a mutual fund must offload minimum 50 per cent of its units through Initial Public Offering (IPO), the stock market regulator has said.
"The mutual funds, which submitted their prospectuses before November 5 and their trust deeds were also approved before that date, will not be considered under the recent order of the finance ministry," Securities and Exchange Commission (SEC) member Mansur Alam has told the FE.
On November 5 last, the finance ministry in a meeting with the SEC decided that from now on a mutual fund must offload minimum 50 per cent of its units through the IPO.
The trust deeds of three mutual funds-Phoenix Finance First Mutual Fund, ICB AMCL Third NRB Mutual Fund, and Islamic Finance and Investment Limited Mutual Fund One-were approved by the SEC before November 5.
According to the SEC member, in case of approving prospectuses of the three funds, they are not required to offload minimum 50 per cent of their units through the IPO. These funds would be treated like other funds, which already got the SEC nod and entered the market.
The SEC member, however, said after final scrutiny they could say which of the three funds would get the SEC nod.