SEBI introduced Mutual Funds Lite

SEBI Introduced MF Lite through a circular dated 31.12.2024. Unlike conventional MFs, it requires lesser compliance. 

Key relaxations are:-

•          Relaxed Eligibility Criteria for sponsors.
•          Private Equity funds are allowed as sponsor.
•         Chief Compliance officer can act as Chief Risk Officer.
•          Only Yearly AMC Report is required on place of Half Yearly Trustee Report.
•          No separate Key Information Memorandum & Unaudited Half Yearly Financials requires.
•        Scheme Information Documents to be updated within 2 months from the end of each financial year.

Overall, it increases market liquidity and reduces compliances.