Liquidity requirement for open ended debt schemes imposes minimum liquid asset holdings and mandatory stress testing. SEBI requires most open ended debt schemes to hold at least ten percent of net assets in liquid assets (cash, government securities, T bills, repo on government securities), excludes these holdings from scheme characteristic calculations, and mandates AMCs to restore such exposure before further investments if breached; additionally, all open ended debt schemes except overnight schemes must conduct stress testing under AMC stipulated guidelines, with a committee to review norms and methodology.