Liquidity risk management framework for open ended debt schemes mandates AMFI-prescribed norms and clarifies regulatory asset bases. AMFI must prescribe a liquidity risk management framework for open ended debt schemes (excluding specified gilt and overnight funds) to govern holding of liquid assets and stress testing, to be adopted by all AMCs. SEBI clarifies that for regulatory calculations other than asset allocation limits the base is 100% of Net Assets, whereas for certain asset allocation limits the base is Net Assets excluding the minimum stipulated liquid assets, with an illustrative example provided.
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Provisions expressly mentioned in the judgment/order text.
Liquidity risk management framework for open ended debt schemes mandates AMFI-prescribed norms and clarifies regulatory asset bases.
AMFI must prescribe a liquidity risk management framework for open ended debt schemes (excluding specified gilt and overnight funds) to govern holding of liquid assets and stress testing, to be adopted by all AMCs. SEBI clarifies that for regulatory calculations other than asset allocation limits the base is 100% of Net Assets, whereas for certain asset allocation limits the base is Net Assets excluding the minimum stipulated liquid assets, with an illustrative example provided.
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