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April 06, 2021
It will be based of debt fund AUM as of March-end
Capital market regulator SEBI has modified the contribution norm of asset management companies (AMCs) for setting up of Limited Purpose Clearing Corporation. The contribution of AMCs will now be based on their debt fund AUM as of FY2021 instead of 2019-20.
SEBI had set up a working group consisting of representatives from various mutual funds, Clearing Corporation of India and AMFI for developing a corporate bond market for mutual funds.
In February, SEBI had prescribed that the contribution from AMCs for the share capital of LPCC shall be in proportion to the average AUM of open-ended, debt-oriented MF schemes (excluding overnight, gilt fund and gilt fund with 10-year constant duration, but including conservative hybrid schemes) managed by them for financial year (FY) 2019-20.