
The assets under management (AUM) of passive funds have gone up dramatically in the past few years. Launch of new schemes like target maturity funds, Bharat Bond etc have increased the penetration of passive funds among Indian investors.
The Securities and Exchange Board of India (SEBI) is planning to bring new mutual fund regulations for passive funds. A working group has been formed for the formulation of the passive regulations, Anant Barua, whole time member, Sebi told CNBC TV18 on the sidelines of Assocham Mutual Fund Summit in New Delhi.
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“At the moment, passive fund have to follow many rules that are not relevant to them. This is because the rules and regulations are primarily focused on active funds. We are working to reduce some regulation for passive funds,” said Barua.
The assets under management (AUM) of passive funds have gone up dramatically in the past few years. Launch of new schemes like target maturity funds, Bharat Bond etc have increased the penetration of passive funds among Indian investors.