Circular on Mutual Funds

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....e for Housing Finance Companies (HFCs) 1. Presently, the guidelines for sectoral exposure in debt oriented mutual fund schemes put a limit of 25% at the sector level and an additional exposure not exceeding 5% (over and above the limit of 25%) in financial services sector only to HFCs. In light of the role of HFCs especially in affordable housing space, it has now been decided to increase addit....

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....ay of increase in exposure to Housing Finance Companies (HFCs); Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed 25% of the net assets of the scheme. Appropriate disclosures shall be made in Scheme Informa....

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.... be obtained from a "scrutinizer" in terms of Rule 20 (3) (ix) of Companies (Management and Administration) Rules, 2014 and any future amendment/s to the said Rules thereof. The same shall be submitted to the trustees and also disclosed in the relevant portion of the Mutual Funds' annual report & website. (b) Board of AMCs and Trustees of Mutual Funds shall be required to review and ensure ....

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....said circular, sub-clauses (ii) shall read as under: (a) soft copy of SIDs alongwith printed/ final copy seven working days prior to the launch of the scheme. D. Applicability of the circular 7. All other conditions specified in the above mentioned circulars remain unchanged. 8. This circular shall be applicable with immediate effect. This circular is issued in exercise of the power....