Chapter VIII - NET ASSET VALUE AND TIMELINES FOR ALLOTMENT OF MUTUAL FUND UNITS AND PAYMENT OF INVESTMENT PROCEEDS (From Regulation 43 to Regulation 46)
Mutual fund registration requires sponsors to meet net worth, experience, lock in, and fit and proper criteria. Sponsors must show integrity and meet one of two sound track record routes: Route 1-minimum five years in financial services, five years of profitability, positive net worth and liquid net worth exceeding proposed capital contribution, and an AMC net worth of at least Rs. 50 Crore maintained in specified assets; Route 2-senior officers meeting experience thresholds, an initial AMC net worth infusion of Rs. 150 Crore with continuing maintenance requirements, and a five year lock in of minimum shareholding equivalent to Rs. 150 Crore. Sponsors must meet fit and proper criteria, contribute at least 40% of AMC net worth, and comply with governance, custodian and Board conditions.
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.
Mutual fund registration requires sponsors to meet net worth, experience, lock in, and fit and proper criteria.
Sponsors must show integrity and meet one of two sound track record routes: Route 1-minimum five years in financial services, five years of profitability, positive net worth and liquid net worth exceeding proposed capital contribution, and an AMC net worth of at least Rs. 50 Crore maintained in specified assets; Route 2-senior officers meeting experience thresholds, an initial AMC net worth infusion of Rs. 150 Crore with continuing maintenance requirements, and a five year lock in of minimum shareholding equivalent to Rs. 150 Crore. Sponsors must meet fit and proper criteria, contribute at least 40% of AMC net worth, and comply with governance, custodian and Board conditions.
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