The Securities and Exchange Board of India (Sebi) on Wednesday issued curbs on mutual fund (MF) investments in debt instruments with special features such as additional tier-I (AT1) bonds. In a circular, the markets regulator said no MF shall, under all its schemes, own more than 10 per cent of AT1 bonds issued by a single issuer. Further, at the scheme level, the exposure to such instruments shall be less than 10 per cent of the total assets and less than 5 per cent towards a single issuer. The restrictions will apply to all debt instruments that have special features such as subordination-to-equity and convertible-to-equity upon the trigger of a pre-specified event for loss absorption.
Sebi asks mutual funds to cast vote on all company resolutions
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Last Updated: Mar 05, 2021, 09:36 PM IST
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Synopsis
In case fund manager of any specific scheme has strong view against the views of fund manager of the other schemes, the voting at scheme level will be allowed subject to recording of detailed rationale for the same.
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Sebi said fund managers should submit a declaration on quarterly basis to the trustees that the votes cast by them have not been influenced by any factor other than the best interest of the unit holders.
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Mumbai: The Securities and Exchange Board of India (Sebi) on Friday said mutual funds including their passive investment schemes like index funds and exchange traded funds should cast votes compulsorily on all company resolutions.
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