Stress testing requirements for liquid and money market funds mandate regular policy-driven tests and trustee reporting. AMCs must maintain a documented stress testing policy, approved by the Board, mandating at least monthly stress tests of Liquid Fund and Money Market schemes covering interest rate risk, credit risk, and liquidity and redemption risk; methodologies and parameters must be detailed, vulnerabilities must be reported to trustees with corrective actions, the policy must be reviewed annually for adequacy and integration into risk management, and trustees must report compliance and remedial steps in the Half Yearly Trustee Report.
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Stress testing requirements for liquid and money market funds mandate regular policy-driven tests and trustee reporting.
AMCs must maintain a documented stress testing policy, approved by the Board, mandating at least monthly stress tests of Liquid Fund and Money Market schemes covering interest rate risk, credit risk, and liquidity and redemption risk; methodologies and parameters must be detailed, vulnerabilities must be reported to trustees with corrective actions, the policy must be reviewed annually for adequacy and integration into risk management, and trustees must report compliance and remedial steps in the Half Yearly Trustee Report.
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