Markets regulator Sebi on Thursday made it mandatory for asset management companies to deploy money collected from investors through new fund offers (NFOs) within 30 days from the date of allotment of units. At present, there is no time limit for deployment of funds. The measure, to be implemented from April 1, 2025, is aimed at encouraging AMCs to collect only as much funds in NFOs as can be deployed in a reasonable period of time and to discourage any mis-selling of NFOs of the mutual fund schemes In a circular, Sebi asked AMCs to specify achievable timelines in the Scheme Information Document (SID) of a mutual fund scheme regarding the deployment of the funds as per the specified asset allocation of the scheme and garner funds during the NFO accordingly. "The AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units," it added. In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, it must give rea