News > Sebi strengthens MF norms; winding up of schemes after unitholders' consent 

Sebi strengthens MF norms; winding up of schemes after unitholders' consent 

In a move aimed to further safeguard the interest of mutual fund investors, Sebi has made it mandatory for trustees of mutual funds to obtain the consent of unitholders when the majority of trustees decide to wind up a scheme.

Under the new norms, mutual fund trustees will be required to obtain the consent of the unitholders when the majority of the trustees decide to wind up a scheme or prematurely redeem the units of a close-ended scheme.