SEBI to Review Concerns on Solution-Oriented MF Scheme Closures and Life Cycle Fund Taxation
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SEBI to Re-examine Closure of Solution-Oriented MF Schemes, Tax Issues
M
Moneycontrol•02-03-2026, 07:43
SEBI to Re-examine Closure of Solution-Oriented MF Schemes, Tax Issues
•SEBI will review industry concerns regarding the proposed closure of solution-oriented mutual fund schemes, including tax implications and merger costs.
•SEBI Chairman Tuhin Kanta Pandey signaled a potential review, stating he needs to discuss the feedback before a final response.
•Mutual fund players have raised concerns about the transition, especially the closure of Children’s Benefit Plans and Retirement Funds, which manage over Rs 60,000-70,000 crore.
•Key issues include potential tax incidence for investors due to mergers and operational challenges like changes in expense ratios.
•The new framework discontinues Retirement and Children’s schemes, replacing them with 'Life Cycle Fund' category with a glide-path strategy, raising questions about tax differences between equity and debt.
