Markets regulator Sebi on Friday extended the deadline till August 25 for submission of comments on the proposal to introduce swing pricing mechanism for open-ended mutual fund debt schemes.
On July 19, the watchdog had issued a consultation paper for introduction of the swing pricing mechanism and the last date for submission of public comments on the paper was August 20. “It has been decided to extend the timeline for submission of comments to August 25, 2021,” the Securities and Exchange Board of India (Sebi) said in a statement.Generally, swing pricing refers to a process for adjusting a fund’s net asset value to effectively pass on transaction costs stemming from net capital activity to the investors concerned. In the consultation paper, the regulator has proposed introducing swing pricing mechanism for open-ended mutual fund debt schemes as part of efforts to ensure fairness in treatment of investors, especially during times of market dislocation.