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TMI BlogRestrictions on InvestmentsX X X X Extracts X X X X X X X X Extracts X X X X ..... anagement company: Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and 23 [ triparty repo on Government securities or treasury bills ] : Provided further that investments within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with the Board: 24 [ Provided further that such limit shall not be applicable for investments in case of debt exchange traded funds or such other funds as may be specified by the Board from time to time. ] ] 21 [ 1A. A mutual fund scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instrumen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund : 6 [Provided that this clause shall not apply to any fund of funds scheme.] 5. 7 [***] 8 [6. Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided that a mutual fund may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by the Board: 9 [Provided further that a mutual fund may enter into derivatives transactions in a recognized stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which the shareholding of ten percent or more is held by the schemes or funds managed by manager of the pooled investment vehicle; or c. any investee company in which the pooled investment vehicle holds more than ten percent shareholding or where the directors of the pooled investment vehicle or corporate sponsor has representation on the board or right to nominate representatives on the board . ] 14 [9A. No scheme of a mutual fund shall make any investment in any fund of funds scheme.] 15 [10. No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity shares or equity related instruments of any company: Provided that, the limit of 10 per cent shall not be applicable for investments in 16 [case of] index fund 25 [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted by the SEBI (Mutual Funds) (Amendment) Regulations, 2007, w.e.f.28-05-2007. Prior to substitution, clause 8 read as under; 8. Pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme a mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks. 2 Substituted for clause 1 by the SEBI (Mutual Funds) (Amendment) Regulations, 2016 w.e.f. 12-02-2016. 3 Inserted by SEBI (Mutual Funds) (Amendment) Regulations, 1999 w.e.f 18-12-1999. 4 Omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2016 w.e.f. 12-2-2016. Prior to this Clause 1B read as under; 1B. No mutual fund scheme shall invest more than thirty percent of its net assets in money market instrum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter into derivatives transactions in a recognised stock exchange, subject to such Guidelines as may be specified by the Board] [this proviso had been substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006 w.e.f. 22-5-2006] for, Provided that mutual funds shall enter into derivative transactions in a recognised stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines issued by the Board. [this Proviso had been inserted by the SEBI (Mutual Funds) Amendments Regulations, 1999] 11 Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2008 w.e.f. 22-5-2008. 12 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998 w.e.f. 12-1-1998. This was corrected by w.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not invest more than 5% of its NAV in the unlisted equity shares or equity related instruments in case of open ended scheme and 10% of its NAV in case of close ended scheme.] 23. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as collateralized borrowing and lending obligations 24. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as Provided further that the schemes already in existence shall with an appropriate time and in the manner, as may be specified by the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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