SEBI has given AMCs two more months to comply with the requirement of holding at least 20% of their liquid fund’s AUM in liquid assets like cash and G-secs.
In September 2019, SEBI had made it mandatory for liquid funds to hold at least 20% of their AUM in liquid assets. The new rule to improve risk management and liquidity was to become effective from April 1, 2020 originally.
Other key regulations that have been extended till June 30 are compliance with sectoral limits, following the amortization based valuation method in liquid and money market funds, cyber security audit report and annual report for FY 2019-20.
