Delhi HC: Economic Offender Cannot Seek Travel Abroad For Medical Treatment When Available In India  ||  SC: Governors and President Have No Fixed Timeline To Assent To Bills; “Deemed Assent” is Invalid  ||  SC: Assigning a Decree For Specific Performance of a Sale Agreement Does Not Require Registration  ||  SC: No Quota Applies For Judicial Officers in District Judge Posts, Issuing Seniority Guidelines  ||  SC: Interest Rate Disputes Doesn't Fall under Public Policy to Set Aside Arbitration Awards  ||  SC: If Some Offences are Quashed By Compromise, the FIR For The Same Incident Cannot Continue  ||  Supreme Court: TIP is Unreliable if the Witness Saw the Accused Beforehand  ||  Delhi HC: MYAS Not Bound to ‘Rubber-Stamp’ International Federation Choices  ||  AP HC: Fulfilling Rehabilitation Promises to Displaced is State’s Constitutional Obligation  ||  SC: Career Progression to Higher Echelons of Judiciary is Neither a Matter of Right Nor Entitlement    

Circular on Mutual Funds- (Securities and Exchange Board of India) (15 Feb 2016)

MANU/SMFD/0001/2016

Capital Market

The Securities and Exchange Board of India issued a Circular to ‘put mutual funds in a better position to handle adverse credit events’, reducing the maximum possible sectoral and individualised group investments by a mutual fund. Sectoral exposure in debt oriented mutual fund schemes is reduced from 30 per cent to 25 per cent, and total exposure in a single group cannot exceed 20 per cent of the net assets of the fund (unless the group is public sector organisation). With the reduced limits, mutual funds may be forced to diversify investments, particularly if the funds pegs itself to a specific entity or industry. SEBI’s latest follows closely on the heels of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2016, are aimed at reducing the blowback to fund investors in case debt subscribed to turns out bad.

Relevant : Steps to re-energise Mutual Fund Industry MANU/SMFD/0015/2012 Long Term Policy for Mutual Funds MANU/SMFD/0002/2014

Tags : MUTUAL FUND   SECTOR LIMITS   GROUP LIMITS   DIVERSIFICATION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved