Bombay HC: Clarifies Procedure for Executing Foreign Decrees  ||  Supreme Court: Bureaucratic Delay No Excuse  ||  Supreme Court Grants Full Disability Pension Arrears to Veterans  ||  Delhi HC: Workman Cannot Claim Section 17(B) of the ID Act Wages after Reaching Superannuation Age  ||  Allahabad HC: Caste by Birth Remains Unchanged Despite Conversion or Inter-Caste Marriage  ||  Delhi High Court: Tweeting Corruption Allegations Against Employer Can Constitute Misconduct  ||  Delhi High Court: State Gratuity Authorities Lack Jurisdiction over Multi-State Establishments  ||  Kerala High Court: Arrest Grounds Need Not Mention Contraband Quantity When No Seizure is Made  ||  SC: Silence During Investigation Does Not Ipso Facto Mean Non-Cooperation to Deny Bail  ||  Supreme Court: High Courts Cannot Re-Examine Answer Keys Even in Judicial Service Exams    

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 2026 - All Rights Reserved