Question
Download Solution PDFSEBI issued new issuer limit for Mutual Funds schemes. What is the new limit for debt securities issued by AAA-rated companies?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is 10% of the net asset value.
Key Points
- The Securities and Exchange Board of India (SEBI) has issued new issuer limits for Mutual Funds schemes.
- The new limits are based on the credit rating of the issuer.
- For debt securities issued by AAA-rated companies, the new limit is 10% of the net asset value (NAV) of the scheme.
- For AA-rated companies, the limit is 8%, and for A-rated companies, the limit is 6%.
- For securities issued by companies with lower credit ratings, the limit is 4%.
- The new limits are effective from July 19, 2023.
Last updated on Jun 24, 2025
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