Creation of segregated portfolio for downgraded debt enables separate NAVs, restricted redemptions, and mandated disclosures to investors. Segregated portfolios may be created at the ISIN level for debt or money market instruments affected by issuer level credit events, subject to scheme disclosures and trustee approved AMC policy. AMCs must decide on the credit event day, obtain trustee approval within one business day, suspend transactions until approval, and if approved, allocate equal segregated units to existing investors, disclose NAVs for main and segregated portfolios from the credit event date, restrict subscriptions and redemptions in the segregated portfolio, enable listing and transfers to facilitate exits, and value affected securities using fair valuation reflecting the credit event.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Creation of segregated portfolio for downgraded debt enables separate NAVs, restricted redemptions, and mandated disclosures to investors.
Segregated portfolios may be created at the ISIN level for debt or money market instruments affected by issuer level credit events, subject to scheme disclosures and trustee approved AMC policy. AMCs must decide on the credit event day, obtain trustee approval within one business day, suspend transactions until approval, and if approved, allocate equal segregated units to existing investors, disclose NAVs for main and segregated portfolios from the credit event date, restrict subscriptions and redemptions in the segregated portfolio, enable listing and transfers to facilitate exits, and value affected securities using fair valuation reflecting the credit event.
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