Baroda BNP Paribas AMC announces Change in Investment Restrictions

Baroda BNP Paribas Asset Management Company (AMC) has announced notice cum addendum to the Scheme Information Documents (SID) and Key Information Memorandum (KIM) of schemes of Baroda BNP Paribas Mutual Fund.

Baroda BNP Paribas Mutual Fund has informed that pursuant to SEBI Circular No. SEBI/HO/IMD/IMD-1 DOF2/P/CIR/202 dated November 29, 2022, SEBI has modified single issuer limits for actively managed mutual fund schemes other than Credit risk funds. Accordingly, the investment restrictions of the schemes of Baroda BNP Paribas Mutual Fund other than Baroda BNP Paribas Credit Risk Fund will be modified as follows:

The Revised Provisions: A mutual fund scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer. The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit specified in clause 1 of Seventh Schedule of MF Regulation. The long-term rating of issuers shall be considered for the money market instruments. However, if there is no long-term rating available for the same issuer, then based on credit rating mapping of CRAs between short term and long-term ratings, the most conservative long-term rating shall be taken for a given short term rating. Exposure to government money market instruments such as TREPS on G-Sec/ Tbills shall be treated as exposure to government securities.

The existing exposure of the schemes are grandfathered from the revised provisions till the maturity of the underlying debt and money market instruments. These revised provisions shall be applicable to new investment being made by the schemes with effect from November 30, 2022.

This Notice cum addendum forms an integral part of the SID & KIM of the Scheme read with the addenda issued thereunder. All other terms and conditions as mentioned in the SID & KIM remain unchanged.