Participation of mutual funds in repo in corporate debt securities

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uary 8, 2010, has issued the 'Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010'. The same has been modified vide RBI Circular No. DNBS.PD/CC. No. 196/03.05.002/2010-11 dated August 11, 2010 and RBI Circular No. IDMD.PCD.22/11.08.38/2010-11 dated November 09, 2010. 2. The said Directions have, inter alia, enabled mutual funds to participate in repos in corporate debt securities su .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... India (Mutual Funds) Regulations, 1996, mutual funds shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of six months. e. The Trustees and the Asset Management Companies shall frame guidelines about, inter alia, the following in context of these transactions, keeping in mind the interest of investors in their schemes: i. Category of counterpart .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in corporate debt securities in accordance with directions issued by RBI and SEBI from time to time; ii. The exposure limit for the scheme; and iii. The risk factors associated with repo transactions in corporate bonds 4. 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 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X