Asset management companies (AMCs) have been directed not to invest more than 10 per cent of the scheme’s net asset value (NAV) in AAA-rated debt and money market securities from a single issuer. Schemes will have to limit their exposure at 8 per cent for AA-rated issuers while for instruments below A-rating, 6 per cent has been set as the threshold.
Sebi sets lower single-issuer limits for mutual fund debt schemes
Credit-risk rating based limits introduced for all new schemes; existing schemes to be grandfathered
 "Sebi")
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The decision is aimed to avoid inconsistency MF investments in debt instruments, the regulator has said.
Asset management companies (AMCs) have been directed not to invest more than 10 per cent of the scheme’s net asset value (NAV) in AAA-rated debt and money market securities from a single issuer. Schemes will have to limit their exposure at 8 per cent for AA-rated issuers while for instruments below A-rating, 6 per cent has been set as the threshold.
Topics : SEBI Mutual fund schemes credit risk asset management companies debt resolution mutual fund sector Securities and Exchange Board of India MF schemes exchange traded funds
First Published: Nov 29 2022 | 9:23 PM IST
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