Segregation and ring fencing of scheme assets required when using pool accounts, with daily reconciliation and trustee oversight. Mutual funds may use pool accounts only for mutual fund level transactions where AMCs have board and trustee approved policies and controls ensuring Segregation and Ring-fencing of each scheme's assets, liabilities, bank accounts and securities, with pool accounts reconciled to nil at end of day, unidentified funds allocated to scheme accounts by the next business day, trustee confirmation in half yearly reports, and half yearly audits by trustees' auditors.
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.
Segregation and ring fencing of scheme assets required when using pool accounts, with daily reconciliation and trustee oversight.
Mutual funds may use pool accounts only for mutual fund level transactions where AMCs have board and trustee approved policies and controls ensuring Segregation and Ring-fencing of each scheme's assets, liabilities, bank accounts and securities, with pool accounts reconciled to nil at end of day, unidentified funds allocated to scheme accounts by the next business day, trustee confirmation in half yearly reports, and half yearly audits by trustees' auditors.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
