However, Sebi said that such permission would be considered on a case to case basis, depending on such Asset Management Companies (AMCs) demonstrating that serious efforts are being made by them to meet the networth requirements within the prescribed timelines.
The Securities and Exchange Board of India (Sebi), in February, hiked the minimum net worth requirement for mutual funds to Rs 50 crore from Rs 10 crore in a move to weed out non-serious players and to ensure stability of the financial system.
"Sebi's board has approved a proposal permitting AMCs who are yet to meet with the revised networth requirement of Rs 50 crore, to launch a maximum of two schemes per year till the time such AMCs meet with the net worth requirements," the regulator said in a statement after the board meeting here.
The regulator is said to have stopped clearing applications for any new fund offers (NFOs) of fund houses whose networth is below the required level.
According to industry experts, Sebi has received offer documents from many of these fund houses to launch new schemes, but it is not approving them.