Reliance MF, ICICI Pru, HSBC, Morgan Stanley and IDFC Mutual Funds have decided to discontinue about 190 schemes for subscription through existing SIPs
New Delhi: Five mutual funds, including leading players like Reliance and ICICI Prudential MF, has listed out a total of 190 schemes that would be discontinued for fresh systematic investment plan (SIP) investments to comply with guidelines issued by Securities and Exchange Board of India (SEBI), reports PTI.
The move follows new regulations by SEBI, which require fund houses to launch only one plan per scheme with effect from this month.
Consequently, Reliance MF, ICICI Pru, HSBC, Morgan Stanley and IDFC Mutual Funds today communicated the required changes in their schemes to the BSE, where many of their schemes are listed for trading.
Together, a total of 190 schemes of these five fund houses would be discontinued for subscription or registration in existing SIPs.
SIP offers the mutual fund investors an option to invest as low as Rs100 per month and have gained popularity in the market in recent past.
However, many fund houses have launched multiple SIP plans under one scheme, prompting market regulator SEBI to ask the fund houses to move to 'single plan per scheme' model in a move to make the investment process simpler for investors.
The five fund houses have also communicated to the BSE a list of 22 schemes where the Minimum Purchase Amount and Additional Purchase Amount have been lowered as per SEBI guidelines.
All the proposed changes would be effective immediately and are part of wide-ranging reforms notified by SEBI recently.