Sebi asks fund houses to implement new IDF norms

Sebi asks fund houses to implement new IDF norms

Market regulator Sebi on Tuesday asked fund houses to implement the new rules for Infrastructure Debt Funds (IDF).

The new norms for IDFs, including permitting private placement to less than 50 investors has been permitted as an alternative to New Fund Offer to the public, were notified by Securities and Exchange of India (Sebi) on April 17.

IDFs, which can be set up like mutual funds, can invest funds collected for their schemes in bonds of public financial institutions and infrastructure finance companies.
According to a circular, Sebi said that private placement to less than 50 investors has been permitted as an alternative to New Fund Offer to the public in the case of IDFs.

Meanwhile for private placement, mutual funds have to file a Placement Memorandum with Sebi instead of a Scheme Information Document and a Key Information Memorandum.

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