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TMI BlogNorms for Debt Exchange Traded Funds (ETFs)/Index FundsX X X X Extracts X X X X X X X X Extracts X X X X ..... raded Funds (ETFs)/Index Funds 1. The following norms are prescribed for Debt ETFs/Index Funds to be adopted by all AMCs: (a) The constituents of the index shall be aggregated at issuer level. (b) The index shall have a minimum of 8 issuers. (c) No single issuer shall have more than 15% weight in the index. (d) The rating of the constituents of the index shall be investment grade. (e) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e event, if the conditions laid down in para 2(a) and para 2(b) above are not feasible, the Debt ETFs/Index Funds shall be allowed to invest in issuances of other issuer(s) within the index having duration, yield and credit rating in line with that of the non-available issuances of the issuer(s) forming part of the index, subject to single issuer limits. The duration of Debt ETF/Index Fund shall n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be done within a period of 5 working days. 4. Accordingly, any Debt ETF/Index Fund that seeks to replicate a particular Index shall ensure that such index complies with the aforesaid norms. 5. Compliance Procedure: a) The aforesaid norms shall be applicable to all Debt ETFs/ Index Funds tracking debt indices. b) The Debt ETF/Index Fund issuer shall ensure compliance to the aforesaid norms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g such Debt ETFs/Index Funds. c) The above norms shall not be applicable to Debt ETFs/Index Funds tracking debt indices having constituents as Government Securities (GSecs), Treasury Bills and Tri-party Repo (TREPS) only. 7. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provision of Regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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