Sebi on Wednesday extended the deadline for mutual funds to implement the ASBA facility for new fund offers (NFO) to October 1. Earlier in March, Sebi had kept the deadline of July 1. ASBA is currently in place for IPO subscribers in the equity market. ASBA facility is an investor friendly measure as it would allow investors earn interest on NFO investments till its deployed by its fund managers.
While we were well prepared for the ASBA facility, we are not aware about the the main reason for the extension of the deadline said a senior official from a leading fund house.