Chapter VIII - NET ASSET VALUE AND TIMELINES FOR ALLOTMENT OF MUTUAL FUND UNITS AND PAYMENT OF INVESTMENT PROCEEDS (From Regulation 43 to Regulation 46)
Asset management companies may only provide management/advisory services and must segregate accounts, disclose conflicts, and meet capital requirements. Regulation 21 permits an asset management company to provide only management and advisory services to pooled assets and forbids acting as trustee; it may undertake permitted activities itself or via subsidiaries if it ensures activity-wise segregation of accounts and personnel, meets capital adequacy and approval requirements per activity, prevents and discloses material conflicts of interest to trustees and unit holders, appoints separate fund managers except for identical replicated funds, and ensures fair investor treatment and independence of personnel remuneration; limited additional permissions are allowed for portfolio/advisory services for non-broad-based funds and debt-segment trading and clearing for mutual fund schemes.
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.
Asset management companies may only provide management/advisory services and must segregate accounts, disclose conflicts, and meet capital requirements.
Regulation 21 permits an asset management company to provide only management and advisory services to pooled assets and forbids acting as trustee; it may undertake permitted activities itself or via subsidiaries if it ensures activity-wise segregation of accounts and personnel, meets capital adequacy and approval requirements per activity, prevents and discloses material conflicts of interest to trustees and unit holders, appoints separate fund managers except for identical replicated funds, and ensures fair investor treatment and independence of personnel remuneration; limited additional permissions are allowed for portfolio/advisory services for non-broad-based funds and debt-segment trading and clearing for mutual fund schemes.
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