A joint move by SEBI and RBI for liquidity window to the mutual funds has helped induce confidence in the system, though not much demand for the scheme was seen, the capital market regulator said on Saturday.
In view of the possible redemption pressure that the mutual fund industry may face after the abrupt winding up of six debt schemes of Franklin Templeton Mutual Fund, the central bank announced a special liquidity window of Rs 50,000 crore for mutual funds in April end.
“The move by SEBI & RBI jointly to extend a liquidity window to mutual funds helped build confidence in the system, though not much use was made of the window,” an Indian Chamber of Commerce statement quoted SEBI whole-time director G Mahalingam as saying.
No further details on this was shared.
Mutual Funds need