Portfolio of Liquid Schemes and nomenclature of Liquid Plus schemes
Summary
SEBI mandates that liquid schemes must reduce their portfolio security maturity to 91 days by May 1, 2009. The nomenclature 'Liquid Plus Scheme' is discontinued due to misleading implications regarding liquidity. Mutual funds must disclose these investment restrictions and confirm compliance with the naming change within 30 days.
Text
With effect from February 01, 2009 make investment in /purchase debt and money market securities with maturity of upto182 days only.
With effect from May 01, 2009, make investment in /purchase debt and money market securities with maturity of upto 91 days only.
In case of securities where the principal is to be repaid in a single payout the maturity of the securities shall mean residual maturity.
In case of securities with put and call options (daily or otherwise) the residual maturity of the securities shall not be greater than 182 days w.e.f February 01, 2009 and 91 days w.e.f May 01, 2009.
The above requirements shall be disclosed in the offer document and shall form part of the investment allocation pattern. Any deviation from these requirements shall be viewed as violation of investment restrictions.
Inter-scheme transfers of securities having maturity upto 365 days and held in other schemes as on February 01, 2009 shall be permitted till October 31, 2009.
mutual funds are advised to carry out the change in the nomenclature of “Liquid Plus Scheme” and confirm compliance to SEBI within 30 days from the date of this circular.
Source: SecMarx — Portfolio of Liquid Schemes and nomenclature of Liquid Plus schemes. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.