Participation of mutual funds in repo in corporate debt securities

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....fication no.IDMD.DOD.05./11.08.38/2009-10 dated January 8, 2010, has issued the 'Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010'. The same has been modified vide RBI Circular No. DNBS.PD/CC. No. 196/03.05.002/2010-11 dated August 11, 2010 and RBI Circular No. IDMD.PCD.22/11.08.38/2010-11 dated November 09, 2010. 2. The said Directions have, inter alia, enabled mutual funds to....

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.... d. In terms of Regulation 44 (2) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, mutual funds shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of six months. e. The Trustees and the Asset Management Companies shall frame guidelines about, inter alia, the following in context of these transactions....

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....ed decision, the concerned Scheme Information Document shall disclose the following: i. The intention to participate in repo transactions in corporate debt securities in accordance with directions issued by RBI and SEBI from time to time; ii. The exposure limit for the scheme; and iii. The risk factors associated with repo transactions in corporate bonds 4. This circu....