Sponsor eligibility: fitness, financial soundness and governance conditions determine mutual fund registration compliance. Regulation 7 requires sponsors to be fit and proper with a sound track record and financial fitness-covering sustained business in financial services, positive networth history, adequate liquid networth relative to proposed capital contribution or acquisitions, and sustained profitability-or alternatively to meet enhanced capitalization, share lock in, and senior management experience conditions. Existing mutual funds must be trusts with Board approved trust deeds; trustees and an asset management company must be appointed; sponsors must hold a specified share of AMC networth and persons meeting that holding are deemed sponsors; appointment of a custodian is required for custody of fund assets.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Sponsor eligibility: fitness, financial soundness and governance conditions determine mutual fund registration compliance.
Regulation 7 requires sponsors to be fit and proper with a sound track record and financial fitness-covering sustained business in financial services, positive networth history, adequate liquid networth relative to proposed capital contribution or acquisitions, and sustained profitability-or alternatively to meet enhanced capitalization, share lock in, and senior management experience conditions. Existing mutual funds must be trusts with Board approved trust deeds; trustees and an asset management company must be appointed; sponsors must hold a specified share of AMC networth and persons meeting that holding are deemed sponsors; appointment of a custodian is required for custody of fund assets.
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