Sunday, December 13, 2015

Debt paper: Rule change likely for Mutual Fund investment

·         Investment limit in a single issuer to be changed to less than 15%, depending on the rating of the paper.
·         At present, Securities and Exchange Board of India restricts investment in rated investment grade debt instruments issued by a single issuer to 15 per cent of the scheme’s Net Assets Value
·         About Rs 1 lakh crore of mutual funds’ assets under management exposed to papers perceived to be high risk
·         SEBI wants mutual funds to stop relying on credit rating agencies, build own risk assessment system

·         SEBI asks fund houses to follow best practices guidelines on upfront commission.

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