Clarification regarding investment of Mutual Fund schemes in units of Corporate Debt Market Development Fund

Page 1 of 2 CIRCULAR SEBI/HO/IMD/PoD2/P/CIR/2023/152 September 06, 2023 Asset Management Companies (AMCs)/ Trustee Companies/ Board of Trustees of Mutual Funds/ Trustee Company of CDMDF/ Association of Mutual Funds in India (AMFI) Sir / Madam, Subject: Clarification regarding investment of Mutual Fund schemes in units of Corporate Debt Market Development Fund 1. This has reference to SEBI Circular SEBI/HO/IMD/PoD2/P/CIR/2023/129 dated July 27, 2023 on Investment by Mutual Fund Schemes and AMCs in units of Corporate Debt Market Development Fund (“CDMDF”). 2. In this context, AMFI has requested that for calculation of asset allocation limits, the base may be considered as net asset excluding of investment in units of CDMDF. 3. It is therefore clarified that for calculation of asset allocation limits of mutual fund schemes in terms of Part IV of Chapter 2 on ‘Categorization and Rationalization of Mutual Fund Schemes’ of Master Circular for Mutual Funds dated May 19, 2023, investment in units of CDMDF shall be excluded from base of net assets. 4. The provisions of this circular shall come into force with immediate effect. 5. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulations 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the Page 2 of 2 interest of investors in securities and to promote the development of, and to regulate the securities market. 6. This Circular is available at www.sebi.gov.in under the link “Legal > Circulars”. Yours faithfully, Lakshaya Chawla Deputy General Manager Tel no.: 022-26449369 Email: lakshayac@sebi.gov.in