Mutual funds.

New Delhi:

Market regulator Sebi is set to issue some simplified provisions on mutual funds to reduce the compliance burden for passive funds such as ETFs that are invested on the basis of market index. A senior official gave this information. A passive fund is an investment instrument that is invested by monitoring a market index or specific market segment. This segment includes passive index funds, exchange traded funds (ETFs) and funds that invest in ETFs.

Securities and Exchange Board of India (Sebi) whole-time member Ananta Barua said that in order to make it easier to invest in options like index funds and ETFs, Sebi is going to simplify the provisioning related to mutual funds. "These provisions will provide greater flexibility to index funds and ETFs and make them available to investors at a lower cost with transparency, diversity," he said.

Addressing an Assocham event here, Barua said sebi intends to increase investment in such funds in the Indian mutual fund industry by easing the compliance burden.



(This story has not been edited by the NDTV team; it has been published directly from the Syndicate feed.) )