The Securities and Exchange Board of India (SEBI) amended its regulations to allow futual fund houses to offer instant access facilities in overnight funds. This facility was made in addition to an earlier amendment that made liquid funds eligible for instant access. The new instant access rules will come into effect immediately. SEBI will also allow unclaimed money and dividends to be invested in separately created plans of overnight, liquid, and money market schemes of mutual funds. This will come into effect from 1st December 2021. The total expense ratio that can be charged for such plans will be capped at the expense ratio of the direct plan or 0.5%, whichever is lower. AMCs will not be able to charge exit loads in such plans.
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