Risk management framework for liquid and overnight funds and norms governing investment in short term deposits

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..... AMFI) Sir / Madam, Subject: Risk management framework for liquid and overnight funds and norms governing investment in short term deposits A. Risk management framework for liquid and overnight funds In order to augment the risk management framework for liquid and overnight funds, the following has been decided: 1. Liquid funds shall hold at least 20% of its net assets in liquid assets. For th .....

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..... shall be effective for all fresh investments from 30th day from the date of this circular. It is further clarified that the aforesaid requirement to levy exit load shall not be applicable to any investments made in liquid funds prior to 30th day from the date of this circular. To ensure uniformity across the industry, AMFI is advised to prescribe the minimum exit load in a liquid fund on a graded .....

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..... y 1. The provision at paragraph A-1 shall be effective from April 1, 2020. 2. The provision at paragraph A-2 and A-3 shall be effective for all fresh investments with immediate effect. Existing investments in this regard shall be grandfathered. 3. The provisions at paragraph A-5 and B-1 shall be effective from 30th day from the date of this circular. D. This circular is issued in exercise of p .....

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