Networth requirement for mutual fund lite asset management companies requires maintained capital and stricter thresholds if sponsor conditions are unmet.

Regulation sets networth requirements for mutual fund lite asset management companies, with higher initial thresholds when sponsor eligibility conditions are unmet and a permitted reduction after sustained profits. Loans and advances to sponsor, associates, or group companies are excluded from networth computation. The required networth must be maintained continuously, the sponsor is responsible for compliance, and exceeding specified assets under management thresholds brings the Chapter IV net worth requirements into effect.

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