Ch.5 · SID, SAI and KIM Documents · hard
What does the SID disclose about 'illiquid securities' in a portfolio?
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EXPLANATION
SEBI regulations limit a scheme's exposure to illiquid securities (those not readily tradeable on exchanges or with limited market depth) to 15% of NAV. The SID must disclose the definition of illiquid securities used by the scheme and the applicable limits. This ensures fund managers maintain adequate liquidity for redemptions.
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