Mutual fund categorization rules revised to permit portfolio-level duration adjustments with trustee documentation required and changed credit eligibility. The circular requires use of average full market capitalization over the prior six months when consolidating stock lists, mandates that Macaulay duration be measured at the portfolio level with scheme descriptions reflecting portfolio-duration ranges, permits temporary reduction of portfolio Macaulay duration down to one year under anticipated adverse interest-rate movements subject to offer-document disclosure, written justification, trustee review and reporting, revises credit-quality eligibility so Corporate Bond Funds target AA+ and above while Credit Risk Funds target AA and below (excluding AA+), and amends Banking/PSU and Floater fund allocation floors.
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Mutual fund categorization rules revised to permit portfolio-level duration adjustments with trustee documentation required and changed credit eligibility.
The circular requires use of average full market capitalization over the prior six months when consolidating stock lists, mandates that Macaulay duration be measured at the portfolio level with scheme descriptions reflecting portfolio-duration ranges, permits temporary reduction of portfolio Macaulay duration down to one year under anticipated adverse interest-rate movements subject to offer-document disclosure, written justification, trustee review and reporting, revises credit-quality eligibility so Corporate Bond Funds target AA+ and above while Credit Risk Funds target AA and below (excluding AA+), and amends Banking/PSU and Floater fund allocation floors.
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