Meanwhile, the regulator also indicated it is considering increasing the expense ratio limit, as well as providing mutual funds greater flexibility on expenses, within the overall limit.
Though the e-IPO concept has been in the pipeline for some time, a formal decision could not be taken because of various regulatory issues. In fact, the SEBI board was informed on November 24 last year that implementing an e-IPO requires amendments to the Companies Act.
However, it is not in favour of revoking the three-year ban on entry load. All these issues were discussed at a meeting called by the Finance Ministry with fund houses and SEBI officials on Monday.