Revising the Guidelines, the board has made the ‘Stress Test’ mandatory for every mutual fund. Mutual fund scheme managers must test their funds through a suitable ‘Stress Test’ model twice a year. After a board meeting discussion between the scheme supervisor and operator, a detailed report must be submitted to SEBON within a month.
Similarly, the mutual fund scheme managers are required to prepare and implement a ‘Risk Management Policy’ to ensure corporate governance and risk management of multiple schemes.
The board has reduced mandatory seed investment for mutual fund managers to 5 or 10 percent, depending on performance and experience. Previously, the requirement was 15 percent.
