The move comes following a review of investment avenues available for clearing corporations and based on the feedback received from various stakeholders
Markets regulator Sebi on November 28 allowed clearing corporations to make investments in overnight funds. Overnight funds are open-ended debt mutual fund schemes that invest in securities with a maturity of one day. However, the combined investments made by clearing corporations in liquid funds and overnight funds should not exceed a limit of 10 per cent of the total investible resources held by them, the Securities and Exchange Board of India (Sebi) said in a circular.
Further, the investments in overnight funds shall also be considered as liquid assets for calculation of net worth of a clearing corporation.
The move comes following a review of investment avenues available for clearing corporations and based on the feedback received from various stakeholders.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
