Mutual fund houses should ensure that banks — where a scheme has parked funds in the lender’s short-term deposits — do not invest in that particular scheme, according to Sebi.
The markets watchdog has issued a clarification regarding ‘parking of funds in short-term deposits of scheduled commercial banks by mutual funds — pending deployment’.
“Trustees/ asset management companies (AMCs) shall ensure that no funds of a scheme is parked in short-term deposit of a bank which has invested in that scheme,” Sebi said.
