SEBI announced new rules for Liquid MF, minimum 20% will be invested in Liquid Assets.

Sebi announced new rules for Liquid Mutual Funds in its board meeting

SEBI said now the liquid mutual funds scheme has to invest a fixed amount in government securities to keep its assets safer and more liquid. Market regulator Sebi announced these new rules for liquid mutual funds in its board meeting.

Government Securities will have to invest 20 percent

SEBI has said that Liquid Mutual Funds Schemes should keep at least 20% of their investment in liquid assets such as government securities gilts. Liquid Mutual Funds have generally been investing in money markets and debt instruments. Its aim is to provide returns with a low level of low risk and liquidity.

Security will increase: SEBI Chief

This would be largely similar to the statutory liquidity ratio (SLR) set for banks, where lenders have to invest a certain portion of their capital into government bonds. Sebi chief Ajay Tyagi said that under the new rules, liquid mutual funds will have to invest at least 20% in liquid assets like Gilts, which can have an impact on returns, but security will increase.

DVR Framework Approved for Startups

The SEBI Board has cleared one framework for issuing shares with Differential Voting Rights (DVR) for Tech Startups who wish to be listed in the stock market.

Major decisions of SEBI

SEBI has tightened the Disclosure Norms for the promoter’s mortgage shares 
– the beginning of the judicial process against some credit rating agencies – 5% as the bank-royalty 
imposed on mutual funds to maintain the status quo with companies.  

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