Concentrated holding limit enforcement: breach triggers rebalancing, notice and automatic redemption if unremedied by mutual funds at applicable NAV. The circular mandates portfolio level application of a concentration limit, with scheme average net assets computed daily and investor holdings averaged daily to detect breaches. Breaches are assessed over the quarter; a one month rebalancing period is permitted, followed by a 15 day notice to redeem excess exposure. If unredeemed, the mutual fund will effect automatic redemption at the applicable Net Asset Value on the 15th day.
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Provisions expressly mentioned in the judgment/order text.
Concentrated holding limit enforcement: breach triggers rebalancing, notice and automatic redemption if unremedied by mutual funds at applicable NAV.
The circular mandates portfolio level application of a concentration limit, with scheme average net assets computed daily and investor holdings averaged daily to detect breaches. Breaches are assessed over the quarter; a one month rebalancing period is permitted, followed by a 15 day notice to redeem excess exposure. If unredeemed, the mutual fund will effect automatic redemption at the applicable Net Asset Value on the 15th day.
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