Regulatory Alerts2024-01-01
SEC Directive on Liquidity, Borrowing, and Investment Limits for Collective Investment Schemes
The Securities and Exchange Commission of Sri Lanka issued a directive requiring Managing Companies and Trustees of Collective Investment Schemes to implement new liquidity, borrowing, and investment restrictions. The regulation mandates that funds maintain at least 3% of their Net Asset Value in liquid securities and caps borrowing at 15% of NAV for open-ended and interval schemes. Additionally, strict limits are imposed on exposure to single entities, banks, and specific security classes to mitigate risk, with exemptions primarily granted to hedge funds and money market schemes.
Share