SEBI to fix minimum liquid investments for all debt-oriented schemes

-

(Commercial Representative) Mumbai, Ta. 23 September 2020, Tuesday

Ajay Tyagi, chairman of the Securities and Exchange Board of India, the regulator of the capital market, said the latest SEBI standards on investing in multi-cap funds should not be to force mutual funds to invest in small, mid-cap stocks, but to identify the funds labeled. It should not be embarrassing. He also said that the minimum liquid investment for all debt-oriented schemes would be fixed by SEBI in view of the recent high redemption pressures.

Addressing the 9th Annual General Meeting (AGM) of the Association of Mutual Funds in India (AMFI) here today, the SEBI chairman said that the mutual fund industry has to ensure that the label with which it launches the scheme is in line with its requirements. Should. Indefinite categorization only confuses and affects the investor.

It may be mentioned here that SEBI has issued a circular dated September 11, 2020 stating that it has made it mandatory to invest 3% of its portfolio in large cap, 5% in mid and 5% in small cap stocks by February 1, 2021. However, he said that the norms did not force SEBI funds to invest in small, mid-cap stocks, adding that in the interest of investors, these funds should have a portfolio of identification in their schemo-fund with the objective of not confusing investors. done.

On this occasion, the SEBI Chairman further said that the mutual fund industry has been able to cope with the Covid-12 crisis, but some hurdles are still affecting it. The bond market became uninterrupted in March and April and there were buyers only for super rated papers and government securities. The schemes that had credit risks and invested in low rated paper struggled to cope with the redemption pressure. Prudential risk management is the only option for the long-term growth of the industry and to protect the interests of the investor, he said.

He, meanwhile, said that SEBI wanted further changes to be made to improve the risk management of debt mutual fund schemes. This includes making it mandatory for all open-ended debt schemes to have a minimum investment in liquid assets.

Overnight skimo generally invests in liquid assets and there is a provision for liquid skimo to have a minimum investment of 50% in liquid assets, as is not required for other debt-oriented schemes. For this, a framework will be prepared by the committee to determine the minimum asset allocation in liquid assets, taking into account the type of scheme, the type of assets, the type of investors, the results of the stress test, the minimum redemption requirement.

Tyagi further said that in the meantime, SEBI will determine the minimum holding in liquid assets through all debt-oriented schemes, taking into account the recommendations of the Mutual Fund Advisory Committee (MFAC). Meanwhile, when asked about introducing a new benchmark for the FlexiCap category or MultiCap Schemo, he said that the combined weightage of mid and small caps from the benchmark NSE-500 is 18 per cent, SEBI's job is to see that the products are as per its label.


Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se...
Read more