Securities and Exchange Board of India

SEBI/HO/IMD/DF3/CIR/P/2020/76

Dated: April 30, 2020

All Mutual Funds/Asset Management Companies (AMCs)/

Trustee Companies/Boards of Trustees of Mutual Funds/

Association of Mutual Funds in India (AMFI)

Sir / Madam,

Sub: Relaxation in compliance with requirements pertaining to Mutual Funds

1. SEBI vide circular no SEBI/HO/IMD/DF3/CIR/P/2020/47 dated March 23, 2020 had temporarily relaxed certain compliance requirements and extended the timelines for compliance.

2. Further, based on the representations received from AMFI, it has been decided to grant the following relaxations specified in SEBI (Mutual Funds) Regulations,1996 and circulars issued thereunder:

a) The effective date of implementation of certain policy initiatives have been extended as under:

Sr.

No.

Circular Name Particulars Extended Date
1 Risk management framework for liquid and overnight funds  and norms governing  investment in short term deposits dated  September 20, 2019 Liquid funds shall  hold at least 20% of its net assets in liquid assets. June 30, 2020
2 Review of  investment norms for mutual funds   for investment in Debt and Money Market  Instruments  dated October 1, 2019 Existing open  ended mutual  fund schemes  shall  comply with  the revised limits for sector  exposure. June 30, 2020
3 Valuation  of  money  market  and debt securities  dated September 24, 2019 Amortization  based  valuation shall be dispensed with and  irrespective of residual  maturity, all money market and debt securities shall be valued   in terms of paragraph 1.1.2.2 of the Circular June 30, 2020

b) The timelines for submission of cyber security audit reports as mandated in SEBI circular dated January 10, 2019 is extended by two months i.e. till August 31, 2020.

c) The timelines for filing scheme annual reports for the year 2019-20 is extended by one month i.e. till August 31, 2020.

3. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (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,

Deena Venu Sarangadharan
Deputy General Manager
Tel no.: 022-26449266
Email: deenar@sebi.gov.in

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