Risk management for liquid funds: mandatory liquid asset holdings, ban on bank short term deposit parking, fee and NAV changes. Liquid and overnight funds must maintain a minimum proportion of assets in liquid assets (cash, government securities, T bills, repo on government securities) and restore such exposure before further investments if it falls below the threshold. These funds are barred from parking monies in short term deposits of scheduled commercial banks and from investing in debt with structured obligation or credit enhancement ratings, except government guaranteed securities. AMCs cannot charge investment management or advisory fees for parking funds in short term deposits; NAV cut off for purchases is set earlier and an exit load applies to very short term redemptions on fresh investments.
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Provisions expressly mentioned in the judgment/order text.
Risk management for liquid funds: mandatory liquid asset holdings, ban on bank short term deposit parking, fee and NAV changes.
Liquid and overnight funds must maintain a minimum proportion of assets in liquid assets (cash, government securities, T bills, repo on government securities) and restore such exposure before further investments if it falls below the threshold. These funds are barred from parking monies in short term deposits of scheduled commercial banks and from investing in debt with structured obligation or credit enhancement ratings, except government guaranteed securities. AMCs cannot charge investment management or advisory fees for parking funds in short term deposits; NAV cut off for purchases is set earlier and an exit load applies to very short term redemptions on fresh investments.
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