Market regulator Sebi has notified new rules that allow launch of two new schemes in a year by mutual fund houses with net worth below 50 crore rupees. However, such permission would be considered on a case-to-case basis, depending on Asset Management Companies (AMCs) demonstrating that serious efforts are being made by them to meet the net worth requirements within the prescribed timelines. The Securities and Exchange Board of India (Sebi) in a notification said if the Board is satisfied, the asset management company may be allowed to launch up to two new schemes per year. The move will come in force with immediate effect.

Sebi, in February, hiked the minimum net worth requirement for mutual funds to 50 crore rupees from 10 crore rupees in a move to weed out non-serious players and ensure stability of the financial system. The fund houses have been given three years to comply with regulations. At that time, 19 fund houses had net worth below this threshold, but a few of them have since complied with the requirement by increasing their net worth to the desired level. To help the non-compliant fund houses in the interim period, Sebi allowed such entities to launch two new schemes in a year. The move will help small players to launch new schemes.