AMC investment alignment with unitholders: mandatory risk based holdings to be maintained and publicly disclosed. SEBI requires AMCs to maintain a minimum investment in each mutual fund scheme proportional to scheme risk as per the risk-o-meter, using the immediately preceding month's risk value and measured against assets under management. AMCs must maintain this investment for the scheme's tenure or until wind-up, conduct quarterly compliance reviews (except for closed-ended schemes), cure shortfalls within seven days, and may fund the obligation from net worth or sponsor funding subject to net-worth replenishment rules; Trustees monitor compliance and non-compliance must be reported, with scheme-level disclosures on AMC and AMFI websites.
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.
AMC investment alignment with unitholders: mandatory risk based holdings to be maintained and publicly disclosed.
SEBI requires AMCs to maintain a minimum investment in each mutual fund scheme proportional to scheme risk as per the risk-o-meter, using the immediately preceding month's risk value and measured against assets under management. AMCs must maintain this investment for the scheme's tenure or until wind-up, conduct quarterly compliance reviews (except for closed-ended schemes), cure shortfalls within seven days, and may fund the obligation from net worth or sponsor funding subject to net-worth replenishment rules; Trustees monitor compliance and non-compliance must be reported, with scheme-level disclosures on AMC and AMFI websites.
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