Setting up of Limited Purpose Clearing Corporation (LPCC)
Setting up of Limited Purpose Clearing Corporation (LPCC) by Asset Management Companies (AMCs) of Mutual Funds
- SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2021/17dated February 2, 2021 prescribed the modalities for contribution of AMCs towards share capital of LPCC. In this regard, it was prescribed, inter alia, that the contribution from AMCs shall be in proportion to the Average AUM of open-ended debt oriented mutual fund schemes (excluding overnight, gilt funds and gilt fund with 10-year constant duration but including conservative hybrid schemes) managed by them for the Financial Year (FY) 2019-20.
- In consideration of the representation received from AMFI, paragraph 4 of SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2021/17dated February 2, 2021 has been modified to the effect that the contribution of AMCs shall be based on Average AUM of debt oriented schemes, as detailed above, for the Financial Year (FY) 2020-21.
- All other terms and conditions as stated in SEBI circular dated February 2, 2021 shall remain the same.
- This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulations 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market
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