Sebi gives more time to implement rules on direct transaction in ETFs through AMCs

Capital markets regulator Sebi on Thursday provided time till November 1 to asset management companies (AMCs) for implementing rules on facilitating the direct transaction to investors in ETFs. The rules were to come into force from July 1.

The regulator noted feedback was received from stakeholders expressing certain challenges to the implementation of rules and considering the same, it has been decided that the applicability of the rule will start from November 1, according to a circular.

To enhance liquidity in units of exchange-traded funds (ETFs) on stock exchange platforms, the Securities and Exchange Board of India (Sebi) decided that direct transactions with AMCs will be facilitated for investors only for transactions amounts greater than Rs 25 crore.