Sebi sets 20 cr minimum AUM for open-ended debt schemes

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The Securities and Exchange Board of India (Sebi) has made it mandatory for mutual funds to maintain a minimum Rs 20 crore asset under management (AUM) for open-ended debt oriented schemes.

Sebi has directed all mutual funds to comply with the new norm within a year.

In a circular issued on Friday Sebi said, “An average AUM of Rs 20 crore on half yearly rolling basis shall be maintained for open ended debt oriented schemes.”

In case of breach of Rs 20 crore limit, the AMC will have to scale up the AUM of such scheme within a period of six months.

Sebi also has set minimum new fund offer limits for debt and equity schemes and in process raised the minimum Rs 10 crore limit in NFO to Rs 20 crore now for debt oriented and balanced Schemes.

It has also set a minimum subscription amount of Rs 20 crore for debt oriented and balanced schemes at the time of new fund offer (NFO). For other schemes it shall be at least Rs 10 crore, Sebi said. Mutual funds have to report compliance of the new AUM limit to Sebi in the half yearly trustee reports.

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