Sebi proposes swing pricing for MF plans to help ease redemption pressure

Mumbai: The Securities and Exchange Board of India (Sebi) has proposed to introduce the concept of ‘swing pricing’ in mutual fund schemes in a bid to reduce first-mover advantage during redemption pressures in schemes. Swing pricing is a mechanism by which fund houses can adjust a scheme’s net asset value (NAV) in response to the flows into or out of the fund. It could also reduce the impact of redemptions on existing investors by reducing