Mutual fund investment in commodity derivatives permits holding underlying goods on physical settlement and custodial arrangements. Mutual fund schemes may invest in exchange traded commodity derivatives; 'goods' are defined as notified under the Securities Contracts (Regulation) Act and may be held by schemes on physical settlement. Funds may appoint custodians for custody of such goods, and recurring storage and handling expenses arising from physical settlement are permitted scheme expenses. The Seventh Schedule is amended to add clause authorising such investments subject to Board-specified restrictions.
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 investment in commodity derivatives permits holding underlying goods on physical settlement and custodial arrangements.
Mutual fund schemes may invest in exchange traded commodity derivatives; "goods" are defined as notified under the Securities Contracts (Regulation) Act and may be held by schemes on physical settlement. Funds may appoint custodians for custody of such goods, and recurring storage and handling expenses arising from physical settlement are permitted scheme expenses. The Seventh Schedule is amended to add clause authorising such investments subject to Board-specified restrictions.
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 
