{"id":250110,"date":"2021-06-22T09:54:02","date_gmt":"2021-06-22T04:24:02","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=250110"},"modified":"2021-06-22T09:54:02","modified_gmt":"2021-06-22T04:24:02","slug":"sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/","title":{"rendered":"SEBI issues norms for investment and disclosure by mutual funds in derivatives"},"content":{"rendered":"<p style=\"text-align: justify;\">On June 18, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the norms for investment and disclosure by mutual funds in derivatives.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span id=\"page5R_mcid13\" class=\"markedContent\"><span dir=\"ltr\">SEBI <\/span><span dir=\"ltr\">vide <\/span><span dir=\"ltr\">Circular <\/span><span dir=\"ltr\">No.<\/span><span dir=\"ltr\">Cir\/IMD\/DF\/11\/<\/span><span dir=\"ltr\">2010 dated August 18, 2010 <\/span><span dir=\"ltr\">has<\/span><span dir=\"ltr\">, <\/span><span dir=\"ltr\">inter <\/span><span dir=\"ltr\">alia,<\/span><span dir=\"ltr\">prescribed the guidelines for participation of mutual fund schemes in <\/span><span dir=\"ltr\">Interest Rate Swaps (IRS). Paragraph 8 has been modified<\/span><span dir=\"ltr\"> of the aforesaid circular <\/span><span dir=\"ltr\">as follows:<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"text-align: justify;\">Mutual Funds may enter into plain vanilla Interest Rate Swaps (IRS) for hedging purposes. The value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme.<\/li>\n<li style=\"text-align: justify;\">In case of participation in IRS is through over the counter transactions, the counter party has to be an entity recognized as a market maker by RBI and exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme. However, if mutual funds are transacting in IRS through an electronic trading platform offered by the Clearing Corporation of India Ltd. (CCIL) and CCIL is the central counterparty for such transactions guaranteeing settlement, the single counterparty limit of 10% shall not be applicable.\u201d<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>On June 18, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the norms for investment and <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[],"class_list":["post-250110","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEBI issues norms for investment and disclosure by mutual funds in derivatives | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEBI issues norms for investment and disclosure by mutual funds in derivatives\" \/>\n<meta property=\"og:description\" content=\"On June 18, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the norms for investment and\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-22T04:24:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/SEBI1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1330\" \/>\n\t<meta property=\"og:image:height\" content=\"887\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bhumika Indulia\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bhumika Indulia\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/\",\"url\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/\",\"name\":\"SEBI issues norms for investment and disclosure by mutual funds in derivatives | SCC Times\",\"isPartOf\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\"},\"datePublished\":\"2021-06-22T04:24:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.scconline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SEBI issues norms for investment and disclosure by mutual funds in derivatives\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\",\"url\":\"https:\/\/www.scconline.com\/blog\/\",\"name\":\"SCC Times\",\"description\":\"Bringing you the Best Analytical Legal News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.scconline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a\",\"name\":\"Bhumika Indulia\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg\",\"contentUrl\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg\",\"caption\":\"Bhumika Indulia\"},\"url\":\"https:\/\/www.scconline.com\/blog\/post\/author\/editor_1\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"SEBI issues norms for investment and disclosure by mutual funds in derivatives | SCC Times","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/","og_locale":"en_US","og_type":"article","og_title":"SEBI issues norms for investment and disclosure by mutual funds in derivatives","og_description":"On June 18, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the norms for investment and","og_url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/","og_site_name":"SCC Times","article_publisher":"https:\/\/www.facebook.com\/scc.online\/","article_published_time":"2021-06-22T04:24:02+00:00","og_image":[{"width":1330,"height":887,"url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/SEBI1.jpg","type":"image\/jpeg"}],"author":"Bhumika Indulia","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Bhumika Indulia","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/","url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/","name":"SEBI issues norms for investment and disclosure by mutual funds in derivatives | SCC Times","isPartOf":{"@id":"https:\/\/www.scconline.com\/blog\/#website"},"datePublished":"2021-06-22T04:24:02+00:00","author":{"@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a"},"breadcrumb":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.scconline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"SEBI issues norms for investment and disclosure by mutual funds in derivatives"}]},{"@type":"WebSite","@id":"https:\/\/www.scconline.com\/blog\/#website","url":"https:\/\/www.scconline.com\/blog\/","name":"SCC Times","description":"Bringing you the Best Analytical Legal News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.scconline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a","name":"Bhumika Indulia","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg","contentUrl":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg","caption":"Bhumika Indulia"},"url":"https:\/\/www.scconline.com\/blog\/post\/author\/editor_1\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":128401,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/05\/04\/sebi-issues-circular-on-disclosure-of-executive-remuneration-by-mutual-fundsasset-management-companies\/","url_meta":{"origin":250110,"position":0},"title":"SEBI issues circular on disclosure of executive remuneration by Mutual Funds\/Asset Management Companies","author":"Saba","date":"May 4, 2017","format":false,"excerpt":"Circular on Mutual Funds [SEBI\/HO\/IMD\/DF2\/CIR\/P\/2017\/35 \u00a0dated April 28, 2017] 1.Please\u00a0 refer\u00a0 to SEBI \u00a0Circular \u00a0No. SEBI\/HO\/IMD\/DF2\/CIR\/P\/2016\/42 dated 18 March 2016. 2.In partial modification of the above mentioned circular, para C of the circular pertaining to disclosure of executive remuneration shall read as under: \u201cWith the \u00a0underlying objective to promote transparency\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":287747,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/24\/sebi-issued-circular-ewallet-investments-in-mutual-funds-to-protect-interests-of-investors-in-securities-and-to-promote-the-development-of-and-to-regulate-securities-market-legal-research-legal-upda\/","url_meta":{"origin":250110,"position":1},"title":"SEBI mandates E-wallet compliance with KYC norms vide E-wallet Investments in MF","author":"Kriti","date":"March 24, 2023","format":false,"excerpt":"On 23-3-2023, the Securities and Exchange Board of India (\u2018SEBI\u2019) issued circular on the E-wallet Investments in Mutual Funds (\u2018MF\u2019) to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. The provisions will come into effect on 1-5-2023. Through the\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"SEBI","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/Untitled-design-3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/Untitled-design-3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/Untitled-design-3.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/Untitled-design-3.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":249334,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/05\/sebi-issues-circular-for-the-enhancement-of-overseas-investment-limits-on-mutual-funds\/","url_meta":{"origin":250110,"position":2},"title":"SEBI issues circular for the enhancement of overseas investment limits on mutual funds","author":"Bhumika Indulia","date":"June 5, 2021","format":false,"excerpt":"On June 03, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the enhancement of the overseas investment limits for mutual funds. The following limits have been revised: Mutual Funds can make overseas investments subject to a maximum of US $ 1 billion per Mutual\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":342767,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/03\/03\/sebi-circular-on-regulatory-framework-for-specialised-investment-funds\/","url_meta":{"origin":250110,"position":3},"title":"SEBI lays down regulatory standards for SIFs","author":"Kriti","date":"March 3, 2025","format":false,"excerpt":"AMFI to issue detailed standards regarding Risk-Band including on or before 31-3-2025.","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Securities and Exchange Board of India","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Securities-and-Exchange-Board-of-India.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Securities-and-Exchange-Board-of-India.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Securities-and-Exchange-Board-of-India.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Securities-and-Exchange-Board-of-India.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":253662,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/04\/sebi-issues-circular-on-alignment-of-interest-of-asset-management-companies-amcs-with-the-unitholders-of-the-mutual-fund-schemes\/","url_meta":{"origin":250110,"position":4},"title":"SEBI issues circular on alignment of interest of Asset Management Companies with the Unit-holders of the Mutual Fund Schemes","author":"Bhumika Indulia","date":"September 4, 2021","format":false,"excerpt":"On September 02, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular regarding the Alignment of interest of Asset Management Companies (\u2018AMCs\u2019) with the Unitholders of the Mutual Fund Schemes. Regulation 25 of SEBI (Mutual Funds) Regulations,1996 (\u2018MF Regulations\u2019), asset management companies are required to invest\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":250441,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/29\/sebi-circular-on-prudential-norms-for-liquidity-risk-management-for-open-ended-debt-schemes\/","url_meta":{"origin":250110,"position":5},"title":"SEBI | Circular on Prudential norms for liquidity risk management for open ended debt schemes","author":"Prachi Bhardwaj","date":"June 29, 2021","format":false,"excerpt":"The Securities and Exchange Board of India issued a circular on prudential norms for liquidity risk management for open ended debt schemes on June 25, 2021. The circular has specified norms regarding holding of liquid assets in open ended debt schemes & stress testing of open-ended debt schemes. \u00a0 A\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/250110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=250110"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/250110\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=250110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=250110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=250110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}