Liquidity window for mutual funds induced confidence in system: SEBI

Under the special liquidity scheme, the RBI will conduct repo (repurchase agreement) operations of 90-day tenor at a fixed repo rate of 4.40 per cent for banks

A joint move by SEBI and RBI for liquidity window to the mutual funds has helped induce confidence in the system, though not much demand for the scheme was seen, the capital market regulator said on Saturday.

In view of the possible redemption pressure that the mutual fund industry may face after the abrupt winding up of six debt schemes of Franklin Templeton Mutual Fund, the central bank announced a special liquidity window of Rs 50,000 crore for mutual funds in April end.

"The move by SEBI & RBI jointly to extend a liquidity window to mutual funds helped build