Regulation 81 - Eligibility Criteria

Eligibility criteria for Mutual Fund Lite require sponsor financial soundness and governance safeguards before registration is permitted.

Regulation 81 prescribes eligibility for registration as a Mutual Fund Lite, requiring sponsor financial soundness and reputation-positive net worth continuity, positive liquid net worth tied to capital contribution or acquisition value, profitability in most recent years, and a minimum average profit-or alternatively prescribed capitalization, locked in sponsor shareholding, experienced senior personnel, and liquid net worth commensurate with acquisitions. Applicants must be fit and proper; existing funds must be trusts with Board approved deeds; sponsor contribution and sponsor conduct conditions apply; and trustees, an asset management company, and a custodian must be appointed.