Description

Motilal Oswal Asset Management updates Fund of Fund scheme names and attributes to comply with SEBI framework effective August 29, 2025.

Summary

Motilal Oswal Asset Management Company Limited has announced changes to Fund of Fund (FOF) scheme attributes to comply with SEBI’s framework for FOFs with multiple underlying funds. The changes include scheme name modifications, benchmark updates, and expanded eligible underlying schemes, effective August 29, 2025.

Key Points

  • Motilal Oswal Developed Market Ex US ETFs Fund of Funds renamed to Motilal Oswal Developed Market Ex US ETFs Overseas Equity Passive FOF
  • Benchmark change for Gold and Silver ETFs Fund of Funds to domestic pricing methodology
  • Addition of Motilal Oswal Gold ETF and Silver ETF to eligible underlying schemes list
  • Changes align with SEBI letter dated February 6, 2025 and clarification from June 30, 2025

Regulatory Changes

SEBI framework for launching Fund of Fund schemes with multiple underlying funds requires existing FOFs to be re-categorized and aligned with new guidelines. The framework mandates specific naming conventions and categorization for passive overseas equity FOFs.

Compliance Requirements

  • Investment managers must update Scheme Information Documents (SID) and Key Information Memorandums (KIM)
  • Addendum forms integral part of scheme documents
  • All other terms and conditions remain unchanged
  • Notice cum addendum must be distributed to investors

Important Dates

  • August 29, 2025: Effective date for all scheme changes
  • February 6, 2025: Original SEBI letter date
  • June 30, 2025: SEBI clarification date
  • August 26, 2025: Notice publication date

Impact Assessment

Minimal operational impact as changes are primarily nomenclature and compliance-driven. Investors in affected schemes will see updated scheme names and benchmark references but no changes to investment strategy or portfolio composition. Addition of Motilal Oswal’s own ETFs to eligible lists provides more investment flexibility.

Impact Justification

Routine compliance changes to align with SEBI framework for Fund of Fund schemes