Clarifications on parity in exit load

SEBI vide its Circular SEBI/IMD/CIR No. 7/173650/2009 dated August 17, 2009 has issued clarifications with regard to bringing parity in exit load among all classes of unit holders.

AMCs while bringing parity in exit load have to comply with the following requirements: -

• The principle laid down in the SEBI circular No. SEBI/IMD/CIR No. 5/126096/08 dated May 23, 2008 (clause 16 of the standard observations) that “any imposition or enhancement in the load shall be applicable on prospective investments only” should be followed.
• The parity among all classes of unit holders in terms of charging exit load should be made applicable at the portfolio level.

A copy of the Circular is available here.

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