Review of provision regarding segregation of portfolio due to the COVID - 19 pandemic.
Summary
This circular modifies the trigger date for creating segregated portfolios in mutual fund schemes from a credit event to the receipt of a debt restructuring proposal. It mandates immediate reporting of such proposals to valuation agencies, credit rating agencies, debenture trustees, and AMFI. The modifications are valid until December 31, 2020, while other relevant provisions remain applicable.
Text
the date of proposal for restructuring of debt received by AMCs shall be treated as the trigger date for the purpose of creation of segregated portfolio.
Such proposal of restructuring of debt received by AMCs shall be immediately reported to the Valuation Agencies, Credit Rating Agencies, Debenture Trustees and AMFI. AMFI, on receipt of such information, shall immediately disseminate it to its members.
The above modifications permitted to SEBI circular dated December 28, 2018 shall be in force till December 31, 2020.
This Circular shall come into force with immediate effect.
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.
Source: SecMarx — Review of provision regarding segregation of portfolio due to the COVID - 19 pandemic.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.