Ch.5 · NFO Process and Rules · medium
What is the 'SEBI Observation Letter' in the context of new scheme launches?
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EXPLANATION
After an AMC files the SID with SEBI for a new scheme, SEBI reviews it and issues an Observation Letter conveying its comments or observations. This is not an 'approval' — SEBI does not approve the merit of schemes. The AMC can proceed with the NFO within 12 months of receiving the Observation Letter.
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