SEBI

Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds –Pending deployment

Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds –Pending deployment

 
Securities and Exchange Board of India
 
CIRCULARSEBI/HO/IMD/DF4/CIR/P/2019/093
 
August 16, 2019
 
All Mutual Funds/Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds
 
Sir/Madam,
 

Sub: Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds –Pending deployment

1. Kindly refer to Clause 8 of Schedule VII of SEBI (Mutual Funds) Regulations 1996 read with SEBI circular SEBI/IMD/CIR No. 1/91171/07 dated April 16, 2007 pertaining to investment in Short Term Deposits(STDs)of scheduled commercial banks, pending deployment.
 
2.As regards point 5 of the aforementioned Circular, it is clarified that Trustees/Asset Management Companies (AMCs) shall ensure that no funds of a scheme is parked in STD of a bank which has invested in that scheme. Trustees/AMCs shall also ensure that the bank in which a scheme has STD do not invest in the said scheme until the scheme has STD with such bank.
 
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 the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
 
Yours faithfully,
 
Lamber Singh
Deputy General Manager
Email: lambers@sebi.gov.in

addition u/s 68 addition u/s 69A ca misconduct cash deposit in bank cbdt circular CBDT Instruction cbdt notification cbdt order cbdt press release cgst circular cgst notification cit revision 263 concealment penalty condonation of delay covid-19 custom circular demonetisation due date extension e-way bill faq GST circular GST Council Meeting gst faq gstn advisory GSTR-3B GST rates IBBI ibc icai announcement income tax penalty itat ITAT Delhi mca circular MCA notification penalty 271(1)(c) penalty u/s 271(1)(c) Press Release reasons recorded reopening 148 Reopening us 147 Search & Seizure sebi circular unexplained cash credits validity of notice u/s 148 Withdrawal of 2000 500 Bank Notes

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