The Securities and Exchange Board of India (SEBI) has issued a corrigendum to its circular regarding mutual funds’ participation in repo transactions on corporate debt securities. This corrigendum replaces a Clause 1 in the previous circular, impacting the participation guidelines for mutual funds.
The corrigendum issued by SEBI modifies Clause 1 of the circular, bringing changes to the participation rules for mutual funds in repo transactions on corporate debt securities. The revised clause aligns with the existing SEBI Master Circular on Mutual Funds, granting mutual funds permission to engage in repos involving corporate bond securities.
Securities and Exchange Board of India
Circular No. SEBI/HO/IMD/IMD PoD-2/P/CIR/2023/87 Dated: June 13, 2023
All Mutual Funds (MFs)/
Asset Management Companies (AMCs)/
Trustee Companies/ Board of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)
Sir/Madam,
Sub: Corrigendum to Circular on Participation of Mutual funds in repo transactions on Corporate Debt Securities dated June 8, 2023
1. Reference is drawn to SEBI Circular SEBI/HO/IMD/IMD PoD-2/P/CIR/2023/85 dated June 8, 2023 on “Circular on Participation of Mutual funds in repo transactions on Corporate Debt Securities”
2. Clause 1 of the abovementioned circular shall be replaced as follows:
“Para 12.18 of SEBI Master Circular on Mutual Funds dated May 19, 2023 allows Mutual funds to participate in repos in corporate bond securities.”
3. 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 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully,
Lakshaya Chawla
Deputy General Manager
Tel. No.022-26449369
lakshayac@sebi.gov.in
