Risk management framework for liquid and overnight funds and norms governing investment in short term deposits

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....l Funds/ Association of Mutual Funds in India (AMFI) Sir / Madam, Subject: Risk management framework for liquid and overnight funds and norms governing investment in short term deposits A. Risk management framework for liquid and overnight funds In order to augment the risk management framework for liquid and overnight funds, the following has been decided: 1. Liquid funds shall ....

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....ho exit the Liquid Fund within 7 days of their investment. The same shall be effective for all fresh investments from 30th day from the date of this circular. It is further clarified that the aforesaid requirement to levy exit load shall not be applicable to any investments made in liquid funds prior to 30th day from the date of this circular. To ensure uniformity across the industry, AMFI is a....

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....ng of funds in short term deposits of scheduled commercial banks." C. Applicability 1. The provision at paragraph A-1 shall be effective from April 1, 2020. 2. The provision at paragraph A-2 and A-3 shall be effective for all fresh investments with immediate effect. Existing investments in this regard shall be grandfathered. 3. The provisions at paragraph A-5 and B-1 shall be effective....