SEBI reviews investment norms for mutual funds for investment in Debt and Money Market Instruments

Dec 11, 2019 | by Avantis RegTech Legal Research Team


The Securities Exchange Board of India (SEBI) on December 10, 2019, has reviewed the investment norms for mutual funds for investment in debt and money market instruments vide Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019. 

SEBI has reviewed the prescribed limit on investments of mutual fund schemes in debt and money market instruments of group companies of both the sponsor and the asset management company of the mutual fund not exceeding 10% made on or before October 1, 2019. It shall be available till the maturity date of such instruments and the maturity date of such instruments shall be made applicable as on October 1, 2019.

Therefore, the asset management companies shall publish a list of their group companies and those of their sponsor on their respective websites and the ‘Association of Mutual Funds in India’ (AMFI) shall publish a list of all group companies along with names and identifier of the respective group which are considered for calculation of group exposure by mutual fund schemes on its website. This shall be declared on first working day of each calendar quarter starting from January 1, 2020.


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