Categorization and Rationalization of Mutual Fund Schemes

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..... e aforesaid circular as under: i. In pt. 8 of the aforesaid circular, after clause c, an additional clause d shall be added as follows: d. While preparing the single consolidated list of stocks, average full market capitalization of the previous six month of the stocks shall be considered. ii. In respect of sr. nos. 3, 4, 6, 7, 8 and 9 of Section B of Annexure to the aforesaid circular, it is clarified that Macaulay duration shall be at portfolio level and accordingly, the column Type of Scheme (Uniform description of scheme) of the respective scheme of the aforesaid sr. nos. is modified and shall be read as given below: An open ended XYZ scheme investing in instruments such that the Macaulay duration of the portfolio is be .....

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..... ticipated adverse situation is 1 year to 7 years Also, whenever the portfolio duration is reduced below the specified floors of 3 years and 4 years in respect of Medium Duration Fund and Medium to Long Duration Fund respectively, the AMC shall be required to record the reasons for the same with adequate justification and maintain the same for inspection. The written justifications shall be placed before the Trustees in the subsequent Trustee meeting. Further, the Trustees shall also review the portfolio and report the same in their Half Yearly Trustee Report to SEBI. iv. Further, Corporate Bond Funds (Sr. No. 11 of Section B of the Annexure to the Circular) would be permitted to invest in AA+ and above rated instrum .....

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..... An open ended debt scheme predominantly investing in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds Floater Fund Minimum investment in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives) 65% of total assets An open ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives) 3. Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December .....

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