SEBI circular dated May 04, 2016 on “Investment Policy, Liquid Assets for the purpose of Calculation of Net Worth of a Clearing Corporation and Transfer of Profits” inter alia permitted the Clearing Corporations to make investments in Fixed Deposits with Banks (only those banks which have a net worth of more than INR 500cr. and are rated A1 (or A1+) or equivalent), Central Government Securities and Liquid schemes of debt mutual funds (subject to a limit of ten percent of the total investible resources held by the Clearing Corporation, at any point in time) .
Upon a review of investment avenues available for Clearing Corporations and based on the feedback received, it has been decided to permit the Clearing Corporations to make investments in Overnight Funds; however, the combined investments made by Clearing Corporations in Liquid Funds and Overnight Funds shall not exceed a limit of ten percent of the total investible resources. Further, the investments in Overnight Funds shall also be considered as ‘Liquid Assets’, for the purpose of calculation of Net worth of a Clearing Corporation.
The provisions of this circular shall come into force with immediate effect.
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