The Securities and Exchange Board of India (SEBI) would facilitate merger or consolidation of mutual fund schemes if the merger or consolidation does not change the fundamental attributes of the surviving scheme.
A SEBI circular issued today said merger or consolidation of mutual fund schemes would not be seen as a change in the fundamental attributes of the scheme if the following conditions were met:
* Mutual funds are able to demonstrate that the circumstances merit merger or consolidation of schemes and the interest of the unitholders of surviving scheme is not adversely affected;
After approval by the boards of AMCs and trustees, the mutual funds file such proposals with SEBI, which in turn, communicates its observations on the proposal within the prescribed time period; and
The letter issued to unitholders incorporates the final observations communicated by SEBI and final copies of the same are filed with SEBI.
SEBI said its circular of 23 June 2003 stands modified to that extent.