Circular, Cir/
IMD/ DF/ 15 /2014, dated June 20, 2014
Minimum Assets
under Management (AUM) of Debt Oriented Schemes
1. It has been
observed that many debt oriented schemes are operating with a very low AUM. In
the interest of investors, it is important that debt oriented schemes have an
adequate corpus to ensure adherence to the investment objectives as stated in
Scheme Information Document and compliance with investment restrictions
specified under SEBI (Mutual Funds) Regulations, 1996.
2. In this regard,
it has been decided that:
a) The minimum subscription amount
of debt oriented and balanced schemes at the time of new fund offer shall be at
least Rs. 20 crore and that of other schemes shall be at least Rs. 10 crore.
b) An average AUM of Rs. 20 crore
on half yearly rolling basis shall be maintained for open ended debt oriented
schemes.
c) The existing open ended debt
oriented schemes shall comply with point (b) stated above within one year from
the date of issue of this circular.
d) In case of breach of points (b)
and (c) above, the AMC shall scale up the AUM of such scheme within a period of
six months so as to comply with point (b) stated above, failing which the
provisions of Regulation 39 (2) (c) of SEBI (Mutual Funds) Regulations, 1996
would become applicable.
e) The confirmation on compliance
of the above shall be reported to SEBI in the Half Yearly Trustee Reports.
3. This circular
is issued in exercise of powers conferred under section 11(1) of the Securities
and Exchange Board of India Act, 1992, read with provisions of regulation 77 of
SEBI (Mutual Funds) Regulations, 1996 to protect the interests of the investors
in securities and to promote the development of and to regulate the securities
market.
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