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AMFI defends Sebi cap on investment in unlisted bonds

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A Sebi rule, which prevents funds from investing more than 10% of their assets in unlisted bonds, was a factor that led to Franklin Templeton shutting six of its schemes, said its global president Mumbai: A day after Franklin Templeton global president's statement on regulatory reasons behind shutting down of 6 debt schemes became public, Association of Mutual Fund in India (AMFI) defended Securities and Exchange Board of India (Sebi) risk management measures.

In a press statement AMFI said that Sebi's cap of 10% for investment in unlisted Non Convertible Debentures (NCDs) and Commercial Papers (CPs) ensured that these steps ensured access to relevant information and improve secondary market liquidity.

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