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TMI BlogTimelines for deployment of funds collected by Asset Management Companies (AMCs) in New Fund Offer (NFO) as per asset allocation of the schemeX X X X Extracts X X X X X X X X Extracts X X X X ..... ual Funds/ Association of Mutual Funds in India (AMFI)/ Registrars to an Issue and Share Transfer Agent (RTAs) Madam/ Sir, Sub: Timelines for deployment of funds collected by Asset Management Companies (AMCs) in New Fund Offer (NFO) as per asset allocation of the scheme 1. With an objective to encourage AMCs to collect only as much funds in NFOs as can be deployed in a reasonable period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an NFO within 30 business days from the date of allotment of units. c) In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. d) The Investment Committee may extend the timeline by 30 business days, while also making recommend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the asset allocation mentioned in the SID. ii. not be permitted to levy exit load, if any, on the investors exiting such scheme(s) af-ter 60 business days of not complying with the asset allocation of the scheme. iii. inform all investors of the NFO, about the option of an exit from the concerned scheme without exit load, via email, SMS or other similar mode of communication. iv. repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same AMC, the AMC shall ensure that the distribution commission paid is lower of the commissions offered under the two schemes of switch transaction. The detailed guidelines in this regard shall be specified by AMFI, in consultation with SEBI. 4. This circular shall come into effect from April 1, 2025. 5. This circular is issued in exercise of the powers conferred under Section 11(1) of the Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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