SEBI has observed that many debt oriented schemes are operating with a very low AUM.
Market regulator has asked fund houses to maintain a minimum of Rs. 20 crore AUM in debt funds on half yearly rolling basis in all open ended debt oriented schemes.
SEBI has also asked fund houses to keep the minimum subscription amount in debt and balanced schemes at Rs. 20 crore during a new fund offer. For other schemes, it said the minimum subscription amount should be Rs. 10 crore.
“It has been observed that many debt oriented schemes are operating with a very low AUM. In the interest of investors, it is important that debt oriented schemes have an adequate corpus to ensure adherence to the investment objectives,” stated SEBI circular.
The regulator has given one years’ time for existing schemes to comply with SEBI’s new rules.
