Sebi eases categorisation norms to allow debt MFs to add liquidity

Mutual funds had requested regulator to allow higher limits for G-secs, T-bills

The Securities and Exchange Board of India (Sebi) has granted mutual funds’ (MFs’) request for allowing additional exposure to government securities (G-secs) and treasury bills (T-bills) for credit risk fund, corporate bond fund, and the banking & PSU fund.  

The regulator has temporarily revised the scheme categorisation norms to make the option available for MFs. The higher limits can be availed for a period of three months.

On Monday, the market regulator, in a communication to MFs, allowed the three debt scheme categories an additional 15 per cent limit to invest in liquid securities, which will be optional for MFs.

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