Sebi also allowed mutual funds flexibility in using expense charges. The markets regulator said that 30 bps expense ratio hike for Tier II cities will be allowed.Entry load for MFs may not be re-introduced. Sebi Chairman, UK Sinha said that these steps have been taken to expand market reach.
Sebi will set up a committee for national mutual fund policy. The regulator has sought tax incentives in equity funds under Rajiv Gandhi Equity Savings Scheme.
Companies will be allowed to achieve the minimum 25 per cent public shareholding rule through the allocation of bonus or rights shares. Market regulations have stipulated that all listed companies must have a minimum 25 per cent public shareholding by June 2013.
The move would force many controlling stakeholders to pare down their shares, but many companies have failed to meet this because of poor market conditions.
The regulator also announced a slew of measures, including those relating to expense ratios and taxation, to boost the asset management industry, which has been badly hit by sluggish markets and recent changes in regulations.
(Source : economictimes.indiatimes.com)
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