The Securities and Exchange Board of India vide its notification dated 6th April 2021 has modifies its framework pertaining to contribution of asset management companies (AMCs) for setting up of limited purpose clearing corporation by mutual funds.
SEBI has notified that the contribution of AMCs will be based on average AUM of debt oriented schemes for the financial year 2020-21.
SEBI in its earlier notification issued guidelines wherein AMCs were required to contribute Rs 150 crore as share capital for setting up of limited purpose clearing corporation (LPCC) by mutual funds, however based on the representation from industry body the Association of Mutual Funds in India sebi has modified the above guidelines.
