SEBI

SEBI relaxes compliance requirements of Mutual Funds

SEBI relaxes compliance requirements of Mutual Funds

SECURITIES AND EXCHANGE BOARD OF INDIA

SEBI/HO/IMD/DF3/CIR/P/2020/76

April 30, 2020

All Mutual Funds/Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)

Sir / Madam,

Sub: Relaxation in compliance with requirements pertaining to Mutual Funds

1. SEBI  vide  circular  no SEBI/HO/IMD/DF3/CIR/P/2020/47 dated  March  23,  2020 had temporarily relaxed certain compliance requirements and extended  the timelines for compliance.

2. Further, based  on  the representations received  from  AMFI,  it  has  been decided to grant the following relaxations specified in SEBI (Mutual  Funds)  Regulations, 1996 and circulars issued thereunder:

(a) The  effective  date  of implementation of certain policy initiatives have been extended as under:

Sr. No. Circular Name Particulars Extended Date
1.
Risk management framework for liquid and overnight funds and norms governing investment in short term deposits dated September 20, 2019
Liquid funds shall hold at least 20% of its net assets in liquid assets June 30, 2020
2.  Review of investment norms for mutual funds for investment in Debt and Money Market Instruments dated October 1, 2019 Existing open ended mutual fund schemes shall comply with the revised limits for sector exposure June 30, 2020
3. Valuation of money market and debt securities dated September 24, 2019 Amortization based valuation shall be dispensed with and irrespective of residual maturity, all money market and debt securities shall be valued in terms of paragraph 1.1.2.2 of the Circular June 30, 2020

(b) The timelines for submission of cyber security audit reports as mandated in SEBI circular dated January 10, 2019 is extended by two months i.e. till August 31, 2020.

(c) The timelines for filing scheme annual reports for the year 2019-20 is extended by one month i.e. till August 31, 2020.3.This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the developmentof, and to regulate the securities market.

Yours faithfully,

Deena Venu Sarangadharan
Deputy General Manager
Tel no.:022-26449266
Email: deenar@sebi.gov.in

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