India markets regulator proposes deadline to use funds from new mutual fund schemes

India's markets regulator, the Securities and Exchange Board of India (SEBI), has proposed a deadline for asset management companies (AMCs) to use funds raised from new mutual fund schemes.

The deadline of six months has been proposed to ensure that AMCs do not hold on to the funds for an extended period without investing them.

Currently, there is no specific timeline for AMCs to use the funds raised from new schemes, which has led to some AMCs holding on to the funds for long periods. This has raised concerns that AMCs may be using the funds for purposes other than investing in the underlying assets of the scheme.

The new deadline will help to ensure that AMCs invest the funds raised from new schemes in a timely manner, which will benefit investors. It will also help to prevent AMCs from using the funds for other purposes, such as meeting their own expenses.

The deadline is a welcome move by SEBI, and it will help to protect the interests of investors. It will also help to improve the efficiency of the mutual fund industry in India.

Here are some of the key benefits of the proposed deadline:

• It will ensure that AMCs invest the funds raised from new schemes in a timely manner, which will benefit investors.
• It will help to prevent AMCs from using the funds for other purposes, such as meeting their own expenses.
• It will help to improve the efficiency of the mutual fund industry in India.

The deadline is expected to be implemented in the near future, and it will be a positive development for the mutual fund industry in India.