GENERAL MANAGER
INVESTMENT MANAGEMENT DEPARTMENT
SEBI/IMD/CIR No.8/18944/03
October 6, 2003
Association of Mutual Funds in India (AMFI)
Dear Sirs,
Sub: Investment limits for government guaranteed debt securities
Clause 1 and 1A of Schedule VII of SEBI (Mutual Fund) Regulations, 1996 contain prudential investment norms stipulating limits on investments in debt securities issued by a single issuer.
It is clarified that the aforesaid investment limits are applicable to all debt securities which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc guaranteed by either state or central government. Government securities issued by central/state government or on its behalf by the RBI are exempt from the above referred investment limits.
The above clarifications are being issued in accordance with Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996.
Yours faithfully,
SURESH GUPTA