Major debt fund overhaul on the cards at Aug 21 Sebi board meet
The markets regulator is likely to announce changes in the framework of liquidity funds.
By ETMarkets.com | Updated:
BCCL
Mumbai: The Securities and Exchange Board of India (Sebi) is set to meet on August 21 to further strengthen regulations for debt mutual funds, ETNOW reported on Tuesday.
The markets regulator is likely to announce changes in framework for liquidity funds, which may require debt funds to completely shift to mark-to-market valuation form April 1, 2020. Sebi may also lower the cap on unrated debt to 5 per cent from 25 per cent of net asset value (NAV), and will review the same periodically, the report said
Sebi will issue a circular on the timeline for grandfathering of current investments.
Debt mutual funds may not be allowed to amortise valuation of debt and money instruments, and classify investments as investment grade, at investment grade and below investment grade.
The markets regulator is likely to announce changes in framework for liquidity funds, which may require debt funds to completely shift to mark-to-market valuation form April 1, 2020. Sebi may also lower the cap on unrated debt to 5 per cent from 25 per cent of net asset value (NAV), and will review the same periodically, the report said
Sebi will issue a circular on the timeline for grandfathering of current investments.
Debt mutual funds may not be allowed to amortise valuation of debt and money instruments, and classify investments as investment grade, at investment grade and below investment grade.
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