Reporting of changes in terms of investment
Summary
This circular partially modifies Para 9.1.1 of SEBI Circular No. SEBI/HO/IMD/DF4/CIR/P/2019/102 regarding changes to investment terms. It mandates that any changes, including maturity extensions for money market or debt securities, must be reported immediately to valuation agencies and registered Credit Rating Agencies along with reasons. The provision became effective from the date of issuance under powers conferred by Section 11(1) of the SEBI Act and Regulation 77 of the Mutual Funds Regulations.
Text
Any changes to the terms of investment, including extension in the maturity of a money market or debt security, shall be reported to valuation agencies and SEBI registered Credit Rating Agencies (CRAs) immediately, along-with reasons for such changes.
The aforesaid provision is applicable from the date of issuance of this circular.
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 — Reporting of changes in terms of investment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.