e-IPOs to be a reality soon, entry load for MFs won't be reintroduced: Sebi

The Securities and Exchange Board of India (Sebi) has cleared the much touted reforms for mutual funds and primary markets. It gave nod for the introduction of e-IPOs, which would allow investors to bid for initial public offers (IPOs) electronically and without any physical paperwork.

For mutual funds, the market regulator has allowed 30 bps expense ratio hike for tier-II cities. But more importantly, the regulator held that the entry load for mutual funds would not to be re-introduced.

The board also cleared the proposal to increase expense ratio to give more flexibility to fund houses to manage expenses.

Besides, the board said it will recommend to the government to make equity MF schemes eligible for Rajiv Gandhi Equity Savings Scheme. Also, it said it will seek tax incentives in equity funds under the scheme. (NDTV Profit)