http://www.livemint.com/Money/hPAgvd0S00cFlsTh09PA8L/Sebi-to-introduce-investment-cap-for-debt-MFs.html
There were 44 MF houses in India managing assets worth Rs.13.24 trillion at the end of October. The assets of credit opportunities funds, which face the maximum risk from downgrades to corporate bonds, stood at Rs.67,622 crore at the end of August, according to Crisil Ltd, a rating agency.
In September, Sebi had asked AMCs to explain the rationale behind their corporate bond investments, as it sought to avoid a redemption crisis similar to the one faced by JPMorgan AMC. Two schemes of the fund were hit because of a Rs.193 crore exposure to bonds of Amtek Auto, which were downgraded by rating agencies because of the company’s deteriorating financial situation.
The AMC was forced to restrict redemptions from the two schemes. However, last week JPMorgan split units in these schemes into two: one for Amtek Auto securities, the other for all its other investments.
Comments