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ARTICLE · 04 NOVEMBER 2019

Mutual Funds – A Closed Chapter For Unlisted Debt Funds

King, Stubb & Kasiva
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SEBI, vide its circular dated 1st October 2019 ("Circular") has mandated and restricted all Mutual Funds to invest only through the listed and rated debt mutual funds and Securities channel...

IndiaFinance and Banking
Ujjal Chattopadhyay
Ujjal Chattopadhyay
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What is there in the Securities and Exchange Board of India (SEBI) Stricture?

SEBI, vide its circular dated 1st October 2019 ("Circular") has mandated and restricted all Mutual Funds to invest only through the listed and rated debt mutual funds and Securities channel, paving the way for enhanced credit risk management. This will result in higher and secured returns for the investors and fund managers.

The Circular further instructs that it will not stop the funds to invest in unlisted Non-Convertible Debentures (NCDs) on the condition of maintaining a simple and verified structure.

The Circular also grants leverage to invest in Securities under the government issuance and control and also in those for whom the credit rating is usually not ascribed.

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