Ch.3 · Sponsor, Trustee and AMC Roles · medium
What is 'risk management' in the AMC structure?
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EXPLANATION
The AMC's risk management function independently monitors all investment risks: market risk (VaR, stress testing), credit risk (credit limits, rating migration), liquidity risk (portfolio liquidity assessment), and operational risks. SEBI requires AMCs to have a robust risk management framework with independent risk officers who report to senior management and trustees.
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