Following is the excerpts of the new regulatory announcements by SEBI on Today 28th July 2011:
- Open Offer: The open offer trigger of 15% has been increased to 25% while the mandatory requirement of open offer for remaining 26% has been set out instead of earlier 20%. It is notable that the take over committee formed under C Achuthan has proposed 100% open offer size. While the trigger level is in line with that of panel's proposal.
- The provision of non-compete fee has been completely scrapped. And all shareholders will be given exit opportunity at same price.
- The mutual fund companies can charge Rs.100 to existing investor on every new investment, while it can charge Rs.150 to a completely new mutual fund investor. This charge will be applicable for investment over Rs.10,000 only.
- According to changes in mutual fund advertising code, from now on mutual funds will not write CAGR return in advertisements, rather will write that how much a particular sum of rupees invested in so and so scheme turned out to be so and so rupees in so and so years.
