Overnight funds are a type of investment fund for debt that invests in overnight stays – debt instruments with a duration of just one day.
Currently, investment advisers (IAS) and research analysts (RAS) are obliged to maintain a specified deposit at a planned bank, marked as a right of retention in favor of the investment adviser Administration and Supervision Body (IAASB) or the Research Analyst Administration and Supervision and Supervision.
Based on the representations of participants in industry and feedback that were received during public consultations, the SEBI board approved the proposal in the meeting of June 2025. The changes to the rules for research analysts and the standards for investment advisors were informed on 6 August on August 6.
According to the circular that was published on Tuesday, Sebi said: “To guarantee compliance with the depositoisen under the standards, IAS and RAS will now maintain a down payment in the form of units of a liquid investment fund or an overnight fund or as a down payment that is maintained with a planned bank.”
Such a down payment will be marked as a right of retention in favor of IaASB or RAASB, as can be the case, it added. The investment advisers and research analysts are obliged to meet the revised standards by 30 September.
Leading Stock Exchange BSE, which functions as both IAASB and RAASB, is instructed to implement the necessary systems and procedures for the implementation of the provisions of the new framework and to bring them into the notification of registered entities.
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