On September 22, 2019,In order to improve the risk management & ensure sufficient liquidity, the regulator for the securities market in India, SEBI (Securities and Exchange Board of India) has tightened the rules for mutual funds, in which it make it mandatory for liquid schemes to hold at least 20 % in liquid assets such as cash and cash equivalents like treasury bills and repo on government securities.
The new guideline comes into force from April 1, 2020.SEBI

Key points:
i.
In addition, It will not allow asset management company (AMC) to charge fees  for investment management & advisory for the parking of funds in short-term deposits of scheduled commercial banks. This rule will be applicable from May, 2020.
ii. Before making additional fresh investments, AMC will have to ensure compliance with the requirement if the investment exposure in liquid assets drops below 20 % of net assets of the liquid scheme.
iii. SEBI also not permitted liquid and overnight schemes from investing in short-term deposits, debt and money market instruments having structured obligations or credit enhancements provisions. But, debt securities with government guarantee will be debarred from such restriction.
iv.If the investor who dropped out from the liquid fund within 7 days of his/her investment, the mutual Fund shall levy exit load on them. But the requirement to levy exit load shall not be applicable to any investments made in liquid funds before the prescribed date.
v. An industry standards organisation,AMFI (Association of Mutual Funds in India) has been asked to provide the minimum exit load in a liquid fund in consultation with SEBI on a graded basis.
vi. Instead of existing 2 pm, the cut-off timings for applicability of Net Asset Value (NAV- the value of an entity’s assets minus the value of its liabilities),   for the purchase of liquid units & overnight funds will be at 1:30 pm.

Debt Mutual Fund:
Mutual funds with fixed maturity date & fixed rate of interest, is known as Debt Mutual Fund. It is a mix of debt or fixed income securities such as Treasury Bills, Government Securities, Corporate Bonds, Money Market instruments and other debt securities of different time horizons.

About SEBI:
Founded
: 12 April 1992
Headquarters: Mumbai, Maharashtra
Chairperson: Ajay Tyagi