Intraday borrowing facility for mutual funds permitted to address liquidity mismatches, with end-of-day repayment and AMC responsibility.

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Full Text of the Document

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....Intraday borrowing facility is permitted for mutual funds to manage liquidity mismatches arising from settlement timing differences. The facility may be used for unitholder pay-outs, scheme investment pay-ins, mark-to-market obligations, foreign exchange settlements and repayment of existing borrowings, subject to end-of-day repayment and the regulatory limits applicable if the borrowing is converted into overnight borrowing.....