Markets regulator Sebi on Friday issued fresh guidelines for participation of mutual fund schemes in interest rate swap, a derivative product. Mutual funds can enter into plain vanilla Interest Rate Swaps (IRS) for hedging purposes. The value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. In another development, the Securities and Exchange Board of India (Sebi) extended the deadline till July 20, from June 20 earlier, for submitting public comments on the suggestions made by the technical group on social stock exchange in the wake of ongoing coronavirus pandemic.
