Sebi allows intraday borrowings by MFs to settle redemptions
GS3अर्थव्यवस्था · विज्ञान-तकनीक · पर्यावरण · सुरक्षा· Monetary policy, RBI & banking· Prelims·
चर्चा में क्यों
Sebi mandated that mutual funds must establish board-approved policies for intraday borrowing to bridge timing mismatches between fund inflows and outflows.
पृष्ठभूमि
Sebi clarified that intraday borrowings are restricted to specific purposes: repurchase or redemption of units, interest payments, or income distribution pay-outs. Asset Management Companies (AMCs) must bear the costs of these borrowings and are prohibited from passing on losses from delayed receivables to investors.
प्रीलिम्स के लिए तथ्य
- संस्थाSebi: The primary regulator for the securities and commodity markets in India
- तथ्यIntraday borrowings are permitted only for unit redemptions, interest payments, or income distributions
- तथ्यAMCs are responsible for bearing the costs of intraday borrowing and losses from delayed receivables
मेन्स के लिए
Q. Discuss how regulatory frameworks for mutual funds balance liquidity management with investor protection in volatile market conditions.
उत्तर के आयाम
- Liquidity mismatch: Addressing the timing gap between investor redemptions and asset liquidation
- Investor protection: Preventing the pass-through of AMC operational costs or delayed receivable losses to retail investors
कीवर्ड: Liquidity Management · Regulatory Oversight · Investor Protection · Asset Management · Market Stability
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