SEBI INTRODUCED CREDIT RISK BASED LIMITS IN DEBT FUND: –
SEBI has introduced credit rating based single issuer limits for actively managed mutual fund schemes.
SEBI has laid regulation that a mutual fund scheme should not invest more than 10% of its net asset value(NAV) in debt and money market securities rated ‘AAA’ issued by a single company.
For companies rated ‘AA’, the exposure should not be more than 8%.
For companies rated ‘A’, the exposure has been capped at 6%.
The long term rating of issuers should be considered for the money market instruments.
Investment in G-Sec and T-Bills should be treated as exposure to government securities, SEBI said. The new rule would be applicable for all the new schemes introduced now. Existing schemes should be grandfathered from these guidelines until the maturity of the underlying debt and money market securities, the regulator said.CREDIT RISK CAPPING ON DEBT MUTUAL FUND
