SEBI has proposed allowing mutual fund schemes to settle cash market transactions on a net basis for funds, while keeping securities settlement gross. This aims to reduce temporary liquidity pressures and operational inefficiencies, especially during index rebalancing or large redemptions, following a similar framework for FPIs.
Exam Lens
Quick Exam Facts From News
1-Minute Revision
- ›Regulator: Securities and Exchange Board of India (SEBI)
- ›Proposal: Net settlement of funds for mutual fund cash market transactions
- ›Target this Regulator: SEBI (Securities and Exchange Board of India)
- ›Target this Proposal: Net settlement of funds for mutual funds in cash market
- ›Target this Precedent: Similar framework already allowed for FPIs
Mastered this topic? Test your knowledge with a full MCQ quiz.
Practice exam-style questions, track your score, and strengthen your recall.