Sebi extends deadline for risk mgmt framework implementation till April '22

Sebi on Friday extended the deadline till April 1 next year for implementing the risk management framework for mutual funds as well as the two-tier structure for benchmarking of certain categories of schemes. The implementation was to come into force from January 1, 2022. Meanwhile, the watchdog has come out with guidelines on usage of pool accounts by mutual funds as well as norms for investment in Bills Re Discounting Scheme (BRDS). All these decisions have been taken after receiving representations from the Association of Mutual Funds in India (AMFI). As per the rules, trustees and Asset Management Companies (AMCs) will have to ensure that the assets and liabilities of each scheme are segregated and ring-fenced from other schemes of a mutual fund. Also, bank accounts and securities accounts of each scheme should be segregated and ring-fenced. However, the securities or funds held in the pool accounts at mutual fund level are duly segregated scheme-wise and is appropriately ...

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