A 16-page order from the Securities Appellate Tribunal (SAT) is bound to be keenly analysed by the mutual fund (MF) industry due to its potentially far-reaching repercussions. A foreign fund house alleged to have changed the “fundamental attributes” of a scheme without informing the unitholders has been directed to compensate two investors.
Tuesday, the SAT pulled up the foreign fund house for not following the norms clearly laid down by the Securities and Exchange Board of India (Sebi). The asset management company has been directed to provide an exit option to two investors who filed an appeal with the tribunal. SAT also rapped Sebi for not giving this relief on the original complaint, after having agreed the scheme’s fundamental attributes had indeed been changed.
News Source – BUSINESS STANDARD.
NEW FUND LAUNCH
Tata Mutual Fund has launched a new fund named as Tata Fixed Maturity Plan Series 33 Scheme A, a close-ended debt scheme with the duration of the scheme is 92 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue is open for subscription from 4 May and closes on 5 May 2011.
News Source – NAV INDIA.