Sebi to alter norms for debt funds
4 years, 5 months ago

Sebi to alter norms for debt funds

Live Mint  

Mumbai: The markets regulator, Securities and Exchange Board of India has set up a working group to assess the liquidity risk management of debt funds. The working group is tasked to tweak the liquidity forms for debt funds, especially open ended, said two people with direct knowledge of the matter. This to ensure that liquidity and risk management norms are adequate for open ended debt funds,” said the first of the two people quoted above. “Anticipating that debt funds are not completely out of woods Sebi’s thought process is to ensure that open ended schemes have enough liquidity buffer to withstand redemption pressures. In the month of May Sebi had allowed certain category of debt funds to invest an additional 15% in liquid assets to meet the temporary covid-19 related redemption stress.

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History of this topic

Debt funds get another layer of safety, equity options increase
4 years, 1 month ago

Debt funds get another layer of safety, equity options increase

Live Mint  

The Securities and Exchange Board of India brought in two new regulations recently that aim to enhance the investment experience in mutual funds. While Sebi’s fund categorization exercise gave investors visibility on the credit and interest rate risks in debt fund categories, liquidity risk couldn’t be assessed easily. “The move creates three layers of protection from liquidity risks—cash buffer, liquid …

3 changes in debt mutual fund rules you should know
4 years, 3 months ago

3 changes in debt mutual fund rules you should know

Live Mint  

Last few years have not been an easy ride for debt mutual fund investors. In order to bring back and retain the trust of investors, the market regulator Sebi has made several changes in the rules for debt mutual funds. Here are the top three rules which have favored debt mutual funds in recent past that you must know: Seggregation …

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