Mutual fund short-term deposit investments must be reported to trustees with reasons and comparative interest-rate justification. Mutual funds may invest pending scheme funds in short-term deposits of scheduled commercial banks, but such placements must be reported to trustees with stated reasons, including a comparison of interest rates offered by other scheduled commercial banks; AMCs must record these reasons in the manner prescribed by the earlier circular, as required under the mutual fund regulatory framework.
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.
Mutual fund short-term deposit investments must be reported to trustees with reasons and comparative interest-rate justification.
Mutual funds may invest pending scheme funds in short-term deposits of scheduled commercial banks, but such placements must be reported to trustees with stated reasons, including a comparison of interest rates offered by other scheduled commercial banks; AMCs must record these reasons in the manner prescribed by the earlier circular, as required under the mutual fund regulatory framework.
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