Samco Mutual Fund changes scheme attributes after rap from market regulator

NFO investors given option to exit without load; Fund house to pay 15% interest

Samco Mutual Fund, a new entrant to the Rs 38 trillion asset management industry, has changed attributes of one of its schemes following a rap from market regulator Securities and Exchange Board of India (Sebi).

The fund house launched its first new fund offer for Samco Flexi Cap Fund, pegging it as a 'pure equity scheme'.

However, the  scheme also intended to invest up to 35 per cent in tri-party repo (TREPS) .

Samco MF stated that the market regulator advised it to incorporate clauses explaining the right attributes in the scheme information disclosure (SID).

Since the scheme shall also invest upto 35 per cent in TREPS instruments, the reference of the word “pure equity scheme” was duly removed from the website in line with the direction received from Sebi, said the fund house.

The fund house has also been directed to give an option to unitholders of the scheme to redeem their units at the prevailing net asset value (NAV) without any exit load.

Further, the fund house has also been asked to pay interest of 15 per cent per annum to exiting unit holders from the date of closure of NFO till the date of payment.

This interest shall be paid by the asset management company to the unit holder.