This is 71st consecutive month witnessing a rise in the numbers of folios, according to data from the Association of Mutual Funds in India.
Besides, the exchange is planning to provide e-KYC services to stock brokers and other approved intermediaries in the near future, BSE said in a statement.
SEBI had allowed mutual funds to grandfather existing investments in unlisted debt instruments till their maturity, so as to not disrupt the market.
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Investors cannot enrol for any fresh systematic investment transactions in these schemes
This move will allow Franklin Templeton Mutual Fund to list their units for those investors who wish to exit.
Kotak Mahindra Bank through its Debt Capital Markets team will work closely with Franklin Templeton Trustees, to assist with all portfolio actions in these six schemes.
Though there are no credit risks, there could be volatility due to interest rate movements
The collapse of Franklin Templeton’s debt schemes added to panic redemption
Last month, mutual funds were net buyers in 44 percent of stocks
The move comes days after markets regulator SEBI asked the fund house to focus on repaying investors at the earliest.
Given the environment, both corporate sector and households may remain thrifty and risk-averse, he said.
Investors should stay calm. Every few years, markets experience sharp corrections and volatility on the downside. Stock prices are always more volatile than fundamental values of businesses.
In 2019-20, the platform contributed Rs 56,038 crore as net equity inflow, which is 66 percent of the mutual fund (MF) industry's net inflow of Rs 83,781 crore, the BSE said in a statement.
The industry added 1,93,761 accounts, taking the total number of folio count to 3.13 lakh crore.
Credit risk funds category continued to suffer in the month of April as well more so after Franklin Templeton shut its six debt funds including a credit risk fund citing liquidity constraints
Sebi’s response comes a day after Franklin Templeton global chief said the guideline of allowing only 10 percent investment in unlisted instruments was one of the reasons that forced it to wind up its six debt schemes.
The Securities and Exchange Board of India (Sebi) in October 2019 in consultation with the Association of Mutual Funds in India (Amfi) and after the deliberation at the mutual fund advisory committee (MFAC) proposed calibrated reduction in limits for investment in unlisted securities in mutual fund schemes.
According to the report, distributors will have to discover a solution to sustain themselves, especially smaller players, from a cash flow and sustainability perspective
According to the company, heightened redemptions after the lockdown led to increased concentration of unlisted bonds which were needed to be held until maturity.
The collapse of Franklin Templeton’s debt schemes has added to panic redemptions.
According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-100 percent in 2019-20 from the preceding fiscal.
Credit Risk Funds constitute less than 5 percent of the total Debt Mutual Fund AUM.