CHIEF GENERAL MANAGER

INVESTMENT MANAGEMENT DEPARTMENT 

SEBIIMD/CIR No.6/63715/06

March 29, 2006

All Mutual Funds Registered with SEBI

Association of Mutual Funds in India (AMFI)

 

Dear Sirs,

 

Re: Applicability of Investment Restrictions for Securitised Debt

This has reference to the e-mail dated February 25, 2005 on the captioned matter.

The applicability of restrictions on investments in Debt Securities including securitised debt are specified under Clause 1 of Schedule VII to the SEBI (Mutual Funds) Regulations, 1996.

It is now clarified that for investments made in securitised debt (mortgage backed securities/asset backed securities) restrictions at the originator level would not be applicable.

This circular is issued under Regulation 77 of SEBI (Mutual Funds) Regulations, 1996. 

Yours faithfully,

D. Chanda