Norms for Debt Exchange Traded Funds (ETFs)/Index Funds

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....aded Funds (ETFs)/Index Funds 1. The following norms are prescribed for Debt ETFs/Index Funds to be adopted by all AMCs: (a) The constituents of the index shall be aggregated at issuer level. (b) The index shall have a minimum of 8 issuers. (c) No single issuer shall have more than 15% weight in the index. (d) The rating of the constituents of the index shall be investment grade. (e) Th....

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.... event, if the conditions laid down in para 2(a) and para 2(b) above are not feasible, the Debt ETFs/Index Funds shall be allowed to invest in issuances of other issuer(s) within the index having duration, yield and credit rating in line with that of the non-available issuances of the issuer(s) forming part of the index, subject to single issuer limits. The duration of Debt ETF/Index Fund shall no....

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.... be done within a period of 5 working days. 4. Accordingly, any Debt ETF/Index Fund that seeks to replicate a particular Index shall ensure that such index complies with the aforesaid norms. 5. Compliance Procedure: a) The aforesaid norms shall be applicable to all Debt ETFs/ Index Funds tracking debt indices. b) The Debt ETF/Index Fund issuer shall ensure compliance to the aforesaid norms f....