Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds – Pending deployment
Summary
This circular clarifies that the tenure of term deposits placed as margin for derivatives trading must not exceed 182 days. It references a previous circular from April 16, 2007, regarding the parking of funds in short-term deposits. The directive is issued under Section 11(1) of the SEBI Act and Regulation 77 of the Mutual Funds Regulations.
Text
the tenure of the term deposits placed as margin for trading in derivatives shall not exceed 182 days.
Source: SecMarx — Parking of Funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds – Pending deployment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.