Financial Daily from THE HINDU group of publications
Thursday, Jun 16, 2005
Financial Daily from THE HINDU group of publications Thursday, Jun 16, 2005 |
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Markets
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Mutual Funds SEBI tells MFs to calculate portfolio limit on daily basis Our Bureau
Kolkata , June 15 THE SEBI has stipulated that the average net assets of a scheme managed by a mutual fund will be calculated daily and any breach of the 25 per cent holding limit by an investor will have to be determined. At the end of a quarter, the average of daily holding by each unit holder will have to be computed in order to determine whether such an investor has breached the limit over that quarter. The regulator has written to AMFI with reference to its earlier circular on the matter. The circular will be applicable at the portfolio level, it said. "If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days' notice to redeem exposure over the 25 per cent limit," the SEBI note said. In case of failure, the investor concerned will redeem exposure over the limit within the aforesaid 15 days. There will be automatic redemption by the mutual fund.
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