SEBI okays graded exit load in liquid funds
SEBI said that the load structure should be reviewed annually by Amfi, in consultation with SEBI.
In a letter addressed to Association of Mutual Funds in India (Amfi), SEBI informed that it approved of the proposal on graded exit loads made by the industry body.
As per the new structure, holding for one day in liquid fund would draw an exit load of 0.007 per cent, two-day will have 0.0065 per cent exit load, followed by 0.006 per cent, 0.0055 per cent, 0.0050 per cent, 0.0045 per cent for the third, fourth, fifth and sixth day respectively with exit load from the seventh day onwards being nil.
SEBI also said that since interest rate scenario can change overtime, the load structure should be reviewed annually by Amfi, in consultation with SEBI.