Zee News June 16, 2009 Sebi Asks M Fs To Cap Money Market Investment At 30%
Cap money mkt investment at 30% in 3 months: SEBI to MFs
MUMBAI: Market regulator SEBI on Monday asked the mutual funds (MFs) to limit their net
investments in money market instruments in a single entity at 30 per cent within three months, a
move that will help them diversify their funds.
“AMC (Asset Management Companies) shall ensure compliance (of capping their investments
at 30 per cent) within a period of three months from the date of notification,” the market
regulator said in a statement.
Welcoming the decision, Mr Jagannadham Thunuguntla, Equity Head, SMC Capital said,
“This is a good step by SEBI to encourage mutual funds managers to allocate their assets in
defined asset classes.”
The SEBI, in a notification on June 5 said that no mutual fund scheme should invest more than
thirty per cent of its net assets in money market instruments of an issuer like commercial papers
However, the cap will not be applicable for investments in government securities, treasury bills
and collateralised borrowing and lending obligations, it had said. - PTI