DEPUTY GENERAL MANAGER
INVESTMENT MANAGEMENT DEPARTMENT
June 23, 2008
All Mutual Funds Registered with SEBI
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Sir / Madam,
Sub: Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds – Pending Deployment
1. Please refer to SEBI circular no. SEBI circular no. SEBI/IMD/CIR No.1/91171/07 dated April 16, 2007 on the captioned subject.
2. It is clarified that the said circular shall not apply to term deposits placed as margins for trading in cash and derivatives market.
3.Further, SEBI circular no. SEBI/IMD/CIR No.8/107311/07 dated October 26, 2007 stands withdrawn.
4.All term deposits placed as margins shall be disclosed in the half yearly portfolio statements under a separate heading. Details such as name of bank, amount of term deposits, duration of term deposits, percentage of NAV may be disclosed.
5. This circular, is available on SEBI website at www.sebi.gov.in under the category “Mutual Funds – Circulars”.
6.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.