Source: ET
Context:
Baroda BNP Paribas Mutual Fund has announced the merger of its Banking & PSU Bond Fund (merging scheme) into its Short Duration Fund (surviving scheme), effective 17th October 2025.
Key Highlights:
- Regulatory Framework:
- The merger is classified as a change in fundamental attributes under Regulation 18(15A) of SEBI Mutual Fund Regulations, 1996.
- SEBI has provided a no-objection for the merger.
- Unitholder Options:
- Investors have a 30-day notice period (17th September to 16th October 2025) to exit without any exit load.
- Post-Merger Scenario:
- No new scheme will be launched.
- Only the Short Duration Fund will continue post-merger.
Significance:
- Consolidates the debt fund offerings of the AMC.
- Simplifies fund management while providing unitholders a choice to exit during the transition period.
