Sebi on MF scheme mergers

The Securities and Exchange Board of India (Sebi) has said that merger or consolidation of mutual fund (MF) schemes will not be viewed as change in the fundamental attribute of the surviving scheme if the fund house justifies that the circumstances merit such a move. Additionally, the fund house has to ensure that the interest of the unit-holders of the surviving schemes are not affected. The decision has been taken to facilitate merger of MF schemes as there are at present more than 3,000 schemes floated by over 40 fund houses. Many schemes have similar characteristics.