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Securities and Exchange Board of India
CIRCULAR
SEBI/HO/IMD/DF2/CIR/P/2022/102 July 28, 2022
To
All Recognized Stock Exchanges/
All Clearing Corporations/
All Depositories/
All Custodians/
All Mutual Funds/
All Asset Management Companies (AMCs)/
All Trustee Companies/ Boards of Trustees of Mutual Funds/
All Registrar and Transfer Agents (RTAs)/
Stock Brokers cum Market Makers/
Association of Mutual Funds in India (AMFI)
Dear Sir/ Madam,
Subject: Addendum to SEBI Circular on Development of Passive Funds
1. This has reference to SEBI circular No. SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated
May 23, 2022 on “Development of passive funds”. The provisions of the said
circular are applicable with effect from July 01, 2022.
2. Clause 2(IV)(A) of the aforesaid circular prescribed that in respect of units of ETFs,
direct transaction with AMCs shall be facilitated for investors only for transactions
above a specified threshold of INR 25 Cr.
3. Subsequently, feedback was received from stakeholders expressing certain
challenges with respect to implementation of the above clause. Considering the
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Securities and Exchange Board of India
same, it has been decided that the applicability of clause 2(IV)(A) of the circular
shall be November 01, 2022.
4. 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.
Yours faithfully,
Manaswini Mahapatra
General Manager
Tel no.: 022-26449375
Email: manaswinim@sebi.gov.in
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