Intraday borrowings permitted for mutual funds to bridge redemption timing, subject to receivable backing and AMC liability. Mutual funds may use intraday borrowings only to bridge timing mismatches for repurchase/redemption and payout obligations, subject to a board approved policy uploaded on the AMC website. Such borrowings cannot exceed the day's guaranteed receivables from specified government and clearing counterparties (including TREPS, reverse repo, government securities proceeds and interest). AMCs must comply with relevant regulatory schedules and master circular provisions and shall bear any costs or losses arising from intraday borrowing or delayed receivables.
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.
Intraday borrowings permitted for mutual funds to bridge redemption timing, subject to receivable backing and AMC liability.
Mutual funds may use intraday borrowings only to bridge timing mismatches for repurchase/redemption and payout obligations, subject to a board approved policy uploaded on the AMC website. Such borrowings cannot exceed the day's guaranteed receivables from specified government and clearing counterparties (including TREPS, reverse repo, government securities proceeds and interest). AMCs must comply with relevant regulatory schedules and master circular provisions and shall bear any costs or losses arising from intraday borrowing or delayed receivables.
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