Circular on Swing pricing framework for mutual fund schemes (dated – 29.09.2021) – SEBI
View PdfCircular on Swing pricing framework for mutual fund schemes (dated – 29.09.2021) – SEBI
- SEBI floated a consultation paper on introduction of swing pricing framework for mutual fund schemes. Pursuant to the feedback received on the said consultation paper and subsequent deliberations in the Mutual Fund Advisory Committee (MFAC), it has been decided to introduce swing pricing framework for open ended debt mutual fund schemes (except overnight funds, Gilt funds and Gilt with 10-year maturity funds).
- Under this framework, to begin with, the swing pricing framework will be made applicable only for scenarios related to net outflows from the schemes. The framework shall be a hybrid framework with:
- Partial swing during normal times and
- Mandatory full swing during market dislocation times for high risk open ended debt schemes.
- Swing pricing for normal times.
- Swing pricing for market dislocation.
- Other aspects pertaining to swing pricing.
- This circular shall be applicable with effect from March 1, 2022.
- AMFI shall prescribe broad parameters specified at para I(a)(i) above within a period of three months from the date of this circular.
- This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
