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Ch.4 · SEBI Mutual Fund Regulations · medium

What is a 'New Fund Offer' (NFO) and what is the standard NFO period?

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EXPLANATION

An NFO (New Fund Offer) is the period during which a new mutual fund scheme is open for subscription at the offer price (typically ₹10 per unit). SEBI regulations specify that the NFO period for open-ended schemes must not exceed 15 days.

A.Launch of a new scheme; NFO period is 30 days

B.Launch of a new scheme; NFO period is 15 days [✓ Correct]

C.Additional units issued by an existing scheme; period is 7 days

D.Re-opening of a closed scheme; period is 10 days

EXPLANATION

An NFO (New Fund Offer) is the period during which a new mutual fund scheme is open for subscription at the offer price (typically ₹10 per unit). SEBI regulations specify that the NFO period for open-ended schemes must not exceed 15 days.

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