Sebi scraps entry load for MFs, cuts fees of intermediaries

The Securities and Exchange Board of India has rationalised disclosure norms for rights issues. The market regulator has allowed investors to choose commission payable to mutual fund distributors and has cut fees for financial intermediaries by 50%. It has also approved the concept of anchor investor. CNBC-TV18 was the first to report these changes on June 16.

The Sebi board which met today approved the concept of anchor investor, which are long-term strategic investors. An anchor investor has to be a qualified institutional buyer and can subscribe up to 30% of the institutional quota. The promoter group cannot be an anchor investor. There will also be a 30-day lock-in period for anchor investors.

On rights issue:

The Sebi board has also rationalised disclosure norms for rights issues. Henceforth, there will be no preferential issue for superior voting rights. Also, no listed company can issue shares with superior rights.

On mutual fund schemes:

Mutual fund investors have a reason to cheer. There will be no entry load on any mutual fund schemes from now on. Distributors will now have to disclose commission for schemes. In a landmark move, mutual fund investors will now decide on the commission payable to distributors.

Fee cut for intermediaries:

The board has decided to rationalise the fees charged by intermediaries. It plans to cut fees for financial intermediaries by 50%. Broker fees for debt deals have been cut to Rs 2.5 per Rs 1 crore of turnover.

On initial public offerings: From here on, companies planning an initial public offering will have to list on at least one national exchange.

NFO: Edelweiss Nifty Enhancer Fund

Scheme Type:  An Open Ended Equity Scheme

Investment Objective :

The primary objective of the Fund is to generate capital appreciation and income distribution by investing in a portfolio that endeavors to outperform the S & P CNX Nifty Index.
However, there is no assurance that the investment objective of the scheme will be realized and the scheme does not assure or guarantee any returns.
"Edelweiss Nifty Enhancer Fund" is only the name of the Fund. The scheme is not an Index Fund. The equity stocks/ weightages of the equity stocks in the scheme Portfolio may differ vis-à-vis the underlying stocks of Nifty Index.

Benchmark Index : S& P CNX Nifty
The fund reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.

Fund Manager : Mr. Gaurav Khandelwal

Plans / Options:

The scheme will have a single Plan with Dividend & Growth Options. Dividend Option shall have Reinvestment, Payout & Sweep Facility. Default Option / facility-Growth Option /Dividend Facility / Dividend Re-investment frequency. If dividend is less than Rs. 100 then no payout but compulsorily re-invested.
The AMC reserves the right to introduce further Plans / Options as and when deemed fit.

Application Amount / No. of Units:

Purchases	Additional Purchases	Redemtions
Minimum Rs. 5,000/- and in multiples of Re.1/- thereafter.	Minimum of Rs. 1,000/- and multiples of Re. 1/- thereafter.	Minimum of Rs. 1,000/- and multiples of Re. 1/- thereafter

Dispatch of Repurchase (Redemption) Request:

Within 10 business days of the receipt of the redemption request at the designated Investor Service Center of Edelweiss Mutual Fund.

Load Structure:

The Load Structure would comprise of an Entry Load and /or an Exit Load / CDSC, as may be permissible under the Regulations. The load structure is stated as under:

Entry Load: NIL

Exit Load: Normally, the Exit Load will be as stated below:

1) Redemption request received on any business day within & including 180 days from the date of allotment in the scheme.
Load Chargeable (as %age of NAV):1.00%

2) Redemption request received on any business day after 180 days(from 181 days) but before & including 365 days from the date of allotment in the scheme.
Load Chargeable (as %age of NAV):0.25%

3) Redemption request received on any business day within & including 180 days from the date of allotment in the scheme.
Load Chargeable (as %age of NAV):Nil