Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds – Pending deployment

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..... r Sirs, Sub: Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds Pending deployment Please refer to clause 8 of Schedule VII of SEBI (Mutual Funds) Regulations 1996 pertaining to investment in short term deposits of scheduled commercial banks, pending deployment. In order to ensure that the funds collected in a scheme are invested as per the investmen .....

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..... No mutual fund scheme shall park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries. 5. Trustees shall ensure that no funds of a scheme may be parked in short term deposit of a bank which has invested in that scheme. 1 [ 6. Asset Management Company (AMC) shall not be permitted to charge inve .....

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..... In case of an existing scheme where the scheme has already parked funds in short term deposits, the AMC shall ensure that such mutual fund schemes conform with the above conditions within a period of 3 months, from the date of the issue of these guidelines. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, .....

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