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SEC allows asset management companies to increase liquidity of fixed income funds during Covid-19 situation



Tuesday 24 March 2020 | No. 63 / 2020


Bangkok, 24 March 2020 – SEC is allowing asset management companies to borrow money or enter into a repurchase transaction agreement for fixed income funds and mixed funds that primarily invest in debt securities, to support temporary liquidity management amid the spread of Covid-19.

SEC Secretary-General Ruenvadee Suwanmongkol announced that SEC has issued a measure allowing asset management companies to borrow money or enter into a repurchase transaction agreement to better manage liquidity of fixed income funds and mixed funds that invest at least 60 percent of the net asset value in debt securities. The limit for such transactions is increased from 10 percent to 30 percent of the NAV at daily closing. This liquidity boosting option is valid until 30 April 2020, as part of the key measures to help asset management companies manage the assets under management more flexibly during the Covid-19 outbreak.