AMCs can launch 2 schemes per yr till they meet networth norms

Mutual fund companies, which are yet to comply with the requirement of minimum Rs 50 crore networth, can only launch a maximum of two schemes annually till the time they meet norms, regulator Sebi said today.
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.

The fund houses have been given three years to comply with regulations.
"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.