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SBI, L&T MF discontinue 19 schemes

According to new SEBI guidelines, AMCs have to launch only one plan per scheme from this month

October 11, 2012 4:29 IST | India Infoline News Service
SBI Mutual Fund and L&T Mutual Fund have informed the BSE (Bombay Stock Exchange) that 10 schemes of SBI MF and nine of L&T MF would be discontinued for fresh SIP (systematic investment plan) registration and subscription. The two fund houses have discontinues the schemes to comply with SEBI (Securities and Exchange Board of India) ‘one-plan, one scheme’ guidelines.

Earlier this month, five asset management companies (AMCs), including major players like Reliance and ICICI Pru MF, HSBC, Morgan Stanley and IDFC had listed out a total of 190 schemes that have been discontinued for fresh SIP investments to comply with SEBI guidelines.

According to new SEBI guidelines, AMCs have to launch only one plan per scheme from this month. The regulator’s direction has affected hundreds of schemes across the AMCs.

SIP offers an option to invest minimum amount of Rs. 100 per month. It had gained popularity in the market in recent past. But, many AMCs have launched multiple SIPs under one scheme, prompting SEBI to ask them to move to 'single plan per scheme' model in a move to make the investment process simpler for investors.

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