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

Tags: News
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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture