Potential Risk Class matrix for debt schemes sets maximum interest rate and credit risk caps for scheme classification. Introduction of a Potential Risk Class (PRC) matrix requiring all debt mutual fund schemes to be mapped to one of nine cells defined by maximum interest rate risk (scheme-level Weighted Average Macaulay Duration: Class I MD 1 year; Class II MD 3 years; Class III any MD) and maximum credit risk (scheme-level weighted average Credit Risk Value: Class A CRV 12; Class B CRV 10; Class C CRV <10). Placement sets maximum permissible MD and CRV, must be disclosed in scheme documents and publications, and changes raising risk beyond the chosen cell constitute a fundamental attribute change.
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.
Potential Risk Class matrix for debt schemes sets maximum interest rate and credit risk caps for scheme classification.
Introduction of a Potential Risk Class (PRC) matrix requiring all debt mutual fund schemes to be mapped to one of nine cells defined by maximum interest rate risk (scheme-level Weighted Average Macaulay Duration: Class I MD 1 year; Class II MD 3 years; Class III any MD) and maximum credit risk (scheme-level weighted average Credit Risk Value: Class A CRV 12; Class B CRV 10; Class C CRV <10). Placement sets maximum permissible MD and CRV, must be disclosed in scheme documents and publications, and changes raising risk beyond the chosen cell constitute a fundamental attribute change.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
