Debt funds to invest more in government debt. Will this benefit you?
- Sebi has provided this facility to corporate debt funds, credit risk funds and banking and PSU debt funds for a period up to three months
On 18 May, capital markets regulator Securities and Exchange Board of India (Sebi) allowed certain categories of debt mutual funds to invest up to 15% more of their assets in government debt, which is the most liquid form of debt in the Indian debt market. The regulator's move is aimed at allowing mutual funds to build up liquidity, given that the industry was under pressure recently following massive redemptions post the winding up of six Franklin Templeton Mutual Fund schemes on 23 April.
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