SEBI vide circular No. SEBI/HO/IMD/DF4/CIR/P/2020/100 dated 12th June 2020, it has been decided that the sponsor or asset management company is required to invest not less than one percent of the amount which would be raised in the new fund offer or fifty lakh rupees, whichever is less in such option of the scheme, as may be specified by the Board. It has also been decided that the above-referred investment shall be made in the growth option of the scheme. For such schemes where the growth option is not available the investment shall be made in the dividend reinvestment option of the scheme. Further, for such schemes where growth options as well as dividend reinvestment options are not available, the investment shall be made in the dividend option of the scheme.
