To preserve a degree of separation between fund managers, custodians, and trustees, the AMC structure for a mutual fund should contain 50 per cent independent directors, a distinct board of trustees business with 50 per cent independent trustees, and independent custodians, among other elements. As a result, AMC is the financial manager, as trustees hold custody of all of the assets and AMC has control over the money. For them to be able to keep a check on each other, it is vital to maintain a delicate equilibrium between them.
The SEBI takes into account several factors while determining whether or not to grant approval, including the Sponsor’s financial health, and the integrity of the firm.
The Securities and Exchange Board of India (SEBI) has issued operational rules for silver exchange-traded funds (ETFs), which would allow investors to gain exposure to the commodity in a more transparent manner than previously possible. The investing objectives, valuation, net asset value (NAV) calculation, tracking error, tracking difference, and disclosure requirements for silver exchange-traded funds (ETFs) have all been created by the regulator, and these criteria are incorporated into the rules.
An SEC circular states that silver exchange-traded funds (ETFs) must invest no less than 95 per cent of their net assets in silver and silver-related products in order to be considered a successful investment. Exchange-traded commodity derivatives (ETCDs) based on silver will also be considered silver-related instruments for the purposes of silver exchange-traded funds (ETFs).
In response to the introduction of silver exchange-traded funds, the Securities and Exchange Board of India (Sebi) has modified its guidelines to enable investors seeking to engage in commodities through stock markets with more possibilities. Indian mutual funds are currently able to establish exchange-traded funds that follow the price of gold in the country (Exchange Traded Funds).
Among other things, the AMC structure for a mutual fund should have independent directors who represent 50% of the fund’s board of directors, a separate board of trustees business with 50 per cent independent trustees, and independent custodians.
As a result, AMC serves as the financial manager, as trustees are in charge of all of the assets and AMC has complete control over all of the funds. The ability to maintain a delicate balance between them is essential for them to be able to keep a check on each other’s actions.
When deciding whether or not to grant approval, the SEBI takes into consideration a number of aspects, including the Sponsor’s financial health and the integrity of the company. Mutual funds must adhere to the advertising guidelines established by the Federal Trade Commission in order to be effective in their marketing efforts.
To address short-term liquidity requirements, a mutual fund can invest up to 25% of its corpus in the money market in the first six months after closing its funds, and up to 15% of its corpus after six months, whichever is greater. The Securities and Exchange Board of India (SEBI) conducts annual inspections of mutual funds to determine whether or not they are in compliance with applicable legislation and regulatory requirements.
Regulation and Federal Reserve Policy are two important aspects of the financial system.
According to SEC Chairman Gary Gensler, payment for order flow (PFOF) is “an inherent conflict of interest.” As a result, the Securities and Exchange Commission (SEC) has been exploring a broad ban on payment for order flow. Specifically, PFOF became a prominent topic in 2021, particularly in relation to Robinhood Markets, Inc. (HOOD) (HOOD). If the Securities and Exchange Commission (SEC) forbids the practice by 2022, it will upend the business models of brokerage firms such as Robinhood and will certainly slow the current rise in active trading and speculation by ordinary investors.
Federal Reserve Board (FRB) Chair Jerome Powell has stated that the Federal Open Market Committee (FOMC) will begin tapering net new bond purchases in December 2021, with the ultimate goal of zero purchases by the middle of 2022. The FOMC currently purchases $120 billion in bonds per month, with the ultimate goal of zero purchases by the middle of 2022. Powell reaffirmed that, despite the tapering, the Fed’s stance will remain “accommodative,” with the central bank continuing its efforts to keep interest rates around zero. Indeed, even after tapering, the Fed will still have a bond portfolio worth approximately $8.5 trillion, which is approximately twice the value it had before the financial crisis and nearly ten times the value it had in mid-2007. As a result, the stock and bond markets have had a rather muted reaction to the news so far.
Because the COVID-19 outbreak has had such a long-lasting impact on the markets and the economy, many investors are likely to be focusing their attention on the upcoming calendar year. Twenty-two years from now, the following themes and concerns may have an impact on the financial landscape.
Oil, gold, automobiles, financial services, and real estate are among the main market sectors to keep an eye on in the years ahead. Aside from that, tapering, interest rates, inflation, payment for order flow (PFOF), and antitrust are also major sources of concern. Continual political battles over federal spending and the debt ceiling, climate change, and student debt are to be expected in 2019.
CFPB policy could be influenced by the new director of the Consumer Financial Protection Bureau (CFPB).
President Biden has reappointed Jerome Powell to his position as chairman of the Federal Reserve Board (FRB).
Three additional seats on the seven-member Federal Reserve Board will be filled by Biden’s choices, though.
The challenges of the labor market, particularly the impact of COVID-19 vaccine regulations, should also be at the forefront of the discussion.
The new worldwide minimum corporate tax rate, which will have ramifications for multinational corporations, will begin to take shape in the coming months.