The Securities and Exchange Board of India (SEBI) has modified its framework regarding the contribution of Asset Management Companies (AMCs) towards the setting up of limited purpose clearing corporation (LPCC) by mutual funds. In February, guidelines were issued that mandated that AMCs contribute INR 150 crore as share capital for setting up of LPCC by mutual funds. Contributions would have to be proportionate to the average assets under management of open-ended debt oriented mutual fund schemes managed by them in FY 2019-20. Such amount would exclude overnight, gilt fund and gilt fund with 10-year constant duration, but would include conservative hybrid schemes. The new circular states that contributions by AMCs will now be based on the average assets under management of debt oriented schemes for FY 2020-21.