The Reserve Bank of India (RBI) has suggested the regulators concerned impose a minimum liquidity limit on fixed-income and liquid fund schemes of mutual funds. The suggestion comes after the IL&FS debt crisis exposed gaps in the mutual fund industry’s approach to valuing fixed-income securities.
In its Financial Stability Report, RBI said that the valuation and maturity restrictions for these instruments are under review by Sebi. A mandatory liquidity limit may also be considered b ..
