Mumbai: Sebi has made it mandatory for mutual funds to get unitholder approval to lift the scheme.
The market watchdog also said that the scheme with Crypto’s related investment would not be allowed until the law exists.
The order that requires Unitholder’s approval is the Fall of the Franklin Templeton decision to end six schemes in April 2020.
The move triggered legal action by Unitholders.
The Supreme Court then directs that unitholders need to choose to raise any scheme.
Under new regulations, approval from unitholders must be obtained with a simple majority under the principle of one voice per unit held.
In the event that the trustee failed to get approval, the scheme will be open to business activities after the publication of results.
Previously, mutual funds could end the scheme if the trustee was the same as needed.
Unitholders can also end the scheme if 75% of them pass the resolution for that effect.
Regulators can also announce the scheme to be closed if it feels it is the interests of unitholders.
While the trustee can begin the process to lift the scheme, the final decision needs to be taken by Unitholders.