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<h1>SEBI Updates Mutual Fund Guidelines: New Rules for Market Cap, Duration, and Credit Ratings by December 15, 2017.</h1> The Securities and Exchange Board of India (SEBI) issued modifications to its earlier guidelines on mutual fund scheme categorization and rationalization. Key changes include the addition of a clause for calculating average market capitalization for stock lists, clarifications on Macaulay duration at the portfolio level, and adjustments to the characteristics of Medium Duration and Medium to Long Duration Funds under adverse conditions. Corporate Bond Funds must invest in AA+ and above-rated instruments, while Credit Risk Funds can invest in AA and below-rated instruments. Further specifications apply to Banking and PSU Funds and Floater Funds. Mutual Funds must submit proposals by December 15, 2017.