The Securities and Exchange Board of India vide its notification dated 6th November 2020 has decided that all open-ended debt schemes (except Overnight Fund, Liquid Fund, Gilt Fund, and Gilt Fund with 10-year constant duration) shall hold at least 10% of their net assets in liquid assets.
The liquid and overnight assets shall not be included for determining the scheme characteristics of the open-ended debt schemes, currently, liquid schemes are required to hold a minimum of 20 percent in liquid assets. In case the exposure in such liquid assets falls below the threshold mandated, the asset management companies (AMCs) will have to ensure compliance with the requirement before making any further investment.
