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Restrictions on Investments
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....rd of Directors of the asset management company: Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and ^23[triparty repo on Government securities or treasury bills]: Provided further that investments within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with the Board: ^24[Provided further that such limit shall not be applicable for investments in case of debt exchange traded funds or such other funds as may be specified by the Board from time to time.]] ^21[1A. A mutual fund scheme shall not invest in unlisted debt instruments including commercial papers, except Governmen....
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....me may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund : ^6[Provided that this clause shall not apply to any fund of funds scheme.] 5. ^7[****] ^8[6. Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided that a mutual fund may engage in short selling of securities in accordance with th....
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....d investment vehicle or a pooled investment fund acting as sponsor of mutual funds, the associate or group company shall also include,- a. associate or group company of the manager of any pooled investment vehicle; or b. investee companies in which the shareholding of ten percent or more is held by the schemes or funds managed by manager of the pooled investment vehicle; or c. any investee company in which the pooled investment vehicle holds more than ten percent shareholding or where the directors of the pooled investment vehicle or corporate sponsor has representation on the board or right to nominate representatives on the board.] ^14[9A. No scheme of a mutual fund shall make any investment in any fund of fu....
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....above shall not be applicable for investments in case of index fund or sector or industry specific scheme pertaining to ^34[****] InvIT.] ^20[14. A mutual fund scheme may invest in exchange traded commodity derivatives subject to such investment restrictions as may be specified by the Board from time to time.] ************** NOTES:- 1 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2007, w.e.f.28-05-2007. Prior to substitution, clause 8 read as under; "8. Pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme a mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks." 2 Substituted for clause....
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.... itself in a position whereby it has to make short sale or carry forward transactions or engage in badla finance: Provided that a Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to such guidelines as may be specified by the Board" 10 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2007, w.e.f. 31-10-2007. Prior to substitution, it read as under; [Provided that a mutual fund may enter into derivatives transactions in a recognised stock exchange, subject to such Guidelines as may be specified by the Board] [this proviso had been substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006 w.e.f. 22-5-2006] for, "Provided that mutual funds shall....
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..... SEBI/LAD-NRO/GN/2019/37 dated 23-09-2019 before it was read as, ^"2[1A. A mutual fund scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of asset management company.]" 22. Substituted vide Notification No. SEBI/LAD-NRO/GN/2019/37 dated 23-09-2019 before it was read as ^"17[11. A mutual fund scheme shall not invest more than 5% of its NAV in the unlisted equity shares or equity related instruments in case of open ended scheme and 10% of its NAV in case of close ended scheme.]" 23. ....