SEBI has paid special attention to
the matter since the closure of the 6 debt scheme of Franklin Mutual Fund AMC.
It has made several changes in the last month regarding debt and equity funds.
Debt mutual funds scheme has been losing investors for some time. For this
major reason, SEBI had to do all this. Please tell that 6 schemes of Franklin
Templeton have defaulted. Due to this, around 28 thousand crore rupees of his
investors were stuck. However, money has been slowly coming back since then to
the investor. In view of the interests of an investors, market regulator SEBI
has made some changes in the rules of mutual funds business, to reduce the
risk. Also, such incidents should be stopped in future.
SEBI told the mutual funds company
that they will now give a new warning in the fund product. It is fundamentally
related to risk. Now, in every mutual fund scheme's risk-o-meter, a very
high-risk category is also included in this. All mutual funds scheme will now
be required to show 6 signals in the risk-o-meter instead of 5. 5 Riskometer
consists of Low, Moderately Low, Moderate, Moderately High and High. Now very
high will also be added to risk-o-meter. This will be effective from January 1,
2021.
According to the new regulations of
SEBI, it will now be necessary to invest 75% of the funds in equity. It was 65%
so far. Now the structure of multi-cap funds will change. Fund houses will be
required to invest 25-25% in midcap and smallcap. At the same time, 25 per cent
will have to be applied in large caps. Earlier this, fund managers could invest
as much as they wanted. This new rule will come into effect from January 2021.
SEBI has mandated liquid funds to
hold at least 20% of its portfolio in liquid assets such as cash, treasury
bills, government securities. In addition, the liquid funds will not be able to
be used corporately to deposit their funds for short periods. In July this
year, SEBI had told that debt mutual funds scheme would have to disclose their
portfolio every 15 days instead of 30 days. Because only some select funds were
disclosing their portfolio twice a month. This will help investors understand
the risks.
SEBI has also told that the mutual
fund company's CEO will be responsible for whether the code of conduct is being
followed by fund managers and dealers. Fund managers and dealers will give the
self-certification to the trustees on a quarterly basis that they have followed
the code of conduct. The mutual funds manager should have a reasonable and
adequate basis for the investment decision. He will be responsible for
investing in the funds that he manages. In addition, the fund managers will
keep written records with details about the purchase and sale of securities.
SEBI has also stated that fund
managers or dealers will not be allowed to do any transaction on behalf of the
fund with any such counterparty. This counterparty consists of associates of
sponsor / AMC / fund manager / dealer / CEO. They cannot accept the offer of
any greed in the case of managing the funds of the unitholders. The fund
managers and the dealers must always speak clearly, transparently and
correctly.
An inter-scheme transfer can be done
only after a fund house tries to increase the liquidity and ends. These will
include the use of cash and cash equivalent assets available in the mutual fund
scheme and the sale of scheme assets in the markets. These circulars will come
into effect from January 1, 2021.
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