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Five mutual funds have between them have discontinued 190 systematic investment plans (SIPs) following SEBI regulations asking fund houses to limit each scheme to one plan.
In a notice to the BSE, ICICI Prudential, HSBC, Reliance, Morgan Stanley and IDFC announced their decision to discontinue for subscription or registration in existing SIPs.
According to SEBI regulations released last month, mutual funds are allowed to launch only one plan/ scheme as opposed to a plethora of plans under one scheme as was the case before. Mutual fund schemes had different plans for different types of investors which led to unfair advantage to a certain set of investors. The regulation was made effective October 1.
Of the 190 schemes, ICICI Pru discontinued the maximum at 142, followed by HSBC at 31, Reliance at 12, Morgan Stanley at three and IDFC at two.
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