Mutual Fund / ETF

Mutual fund is a mechanism that pools money from various investors by issuing units and invest such funds in various securities in accordance with objectives as disclosed in offer document. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI).

Mutual Fund schemes are classified into two types:

  • Open-ended scheme – Open ended schemes are available for subscription and repurchase on a continuous basis. Open ended schemes do not have a fixed maturity period
  • Close-ended Scheme- Close ended scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the New Fund Offer (NFO) and thereafter they can buy or sell the units of the scheme only on the Stock Exchanges where the units are listed.

Mutual Funds in India are governed by the SEBI (Mutual Fund) Regulations 1996 as amended from time to time. "As per the said regulation every close ended scheme other than equity linked saving scheme, shall be listed on recognised Stock Exchange"

Exchange Traded Funds (ETFs)

ETF is an open ended fund which is traded on Stock Exchange. It is a security that trades like a stock on Stock Exchange. ETF is a security that tracks an index, a commodity or a sector like an index fund or a sectoral fund.


Pre Issue Stage - Filling of Draft Scheme Information Document


Exchange to grant In Principle Approval

  • Verification of documents
  • Due Diligence
  • In-Principle Approval

Post Issue Requirement