https://www.taxtmi.com/circulars?id=58538 SEBI prescribes prudential limits on mutual fund derivative activity by capping cumulative gross exposure of a scheme through equity, debt and derivatives at the scheme's net assets, prohibiting writing of options and instruments with embedded written options, and limiting exposure from option premiums. Hedging positions may be excluded from limits only when they demonstrably reduce loss on an existing securities position, use the same underlying, and do not exceed the existing position; excess hedging is counted as exposure. Interest rate swaps for hedging and a standardized exposure computation and disclosure regime are mandated. en-us Wed, 18 Aug 2010 00:00:00 +0530 Fri, 21 Dec 2018 11:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=58538 SEBI prescribes prudential limits on mutual fund derivative activity by capping cumulative gross exposure of a scheme through equity, debt and derivatives at the scheme's net assets, prohibiting writing of options and instruments with embedded written options, and limiting exposure from option premiums. Hedging positions may be excluded from limits only when they demonstrably reduce loss on an existing securities position, use the same underlying, and do not exceed the existing position; excess hedging is counted as exposure. Interest rate swaps for hedging and a standardized exposure computation and disclosure regime are mandated. Circulars SEBI Wed, 18 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/circulars?id=58538