13-April-2021
Markets and Finance
 
Sebi modifies framework for limited purpose clearing corporation by MFs
07-Apr-2021

Markets regulator Sebi on Tuesday tweaked its framework pertaining to contribution of asset management companies (AMCs) for setting up of limited purpose clearing corporation by mutual funds. The regulator had in February issued guidelines wherein AMCs were required to contribute Rs 150 crore as share capital for setting up of limited purpose clearing corporation (LPCC) by mutual funds. It was prescribed that such contribution from AMCs needs to be in proportion to the average assets under management (AUM) of open-ended debt oriented mutual fund schemes (excluding overnight, gilt fund and gilt fund with 10-year constant duration but including conservative hybrid schemes) managed by them for the financial year 2019-20.

News Source:- https://www.financialexpress.com/market/sebi-modifies-framework-for-limited-purpose-clearing-corporation-by-mfs/2228177/