Supreme Court Quashes Rajasthan Village Renaming, Says Government Must Follow its Own Policy  ||  NCLAT: NCLT Can Order Forensic Audit on its Own, No Separate Application Required  ||  NCLAT Reiterates That IBC Cannot be Invoked as a Recovery Tool for Contractual Disputes  ||  Delhi HC: DRI or Central Revenues Control Lab Presence in Delhi Alone Does Not Confer Jurisdiction  ||  Delhi High Court: Software Receipts Not Taxable on PE Basis Already Rejected by ITAT  ||  Delhi High Court: Statutory Appeals Cannot Be Denied Due to DRAT Vacancies or Administrative Delays  ||  J&K&L HC: Failure to Frame Limitation Issue Not Fatal; Courts May Examine Limitation Suo Motu  ||  Bombay HC: Preventing Feeding Stray Dogs at Society or Bus Stop is Not 'Wrongful Restraint'  ||  Gujarat HC: Not All Injuries Reduce Earning Capacity; Functional Disability Must Be Assessed  ||  Delhi HC: Framing of Charges is Interlocutory and Not Appealable under Section 21 of NIA 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 2025 - All Rights Reserved