All. High Court Explains ‘Prima Facie Satisfaction’ of Magistrate Before Summoning/Issuing Process  ||  Kar. HC: Self-Acquired Property Thrown in Common Hotchpot Shall be Treated as Joint Family Property  ||  Bom. HC: Candidates Converting to EWS After Striking Down of SEBC Act Ineligible For Age Relaxation  ||  Del. HC: DDA & MCD Must Put Structural Reforms In Place to Deal With Issue of Illegal Construction  ||  Delhi High Court Dismisses Plea Seeking to Block Article Published By The Print on RAW  ||  Supreme Court: Apple Not Responsible to Trace Stolen Iphone Through Unique Identity Number  ||  Del. HC: Mitsubishi Corporation Can’t Deduct TDS on The Amount Not Chargeable to Tax in India  ||  Delhi HC: Prospective Adoptive Parents Can't Demand Their Choice on Which Child to Adopt  ||  Supreme Court: Termination of Woman Nursing Officer on Grounds of Her Marriage is Unconstitutional  ||  Supreme Court: Accused Absolved of Charges Under IPC Can’t Be Charged Under UP Gangsters Act    

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 2024 - All Rights Reserved