Mutual fund shareholding limits bar sponsors and large shareholders from cross-holding or board seats in other fund managers. Regulation 7B establishes shareholding and governance norms prohibiting sponsors, associates or group companies, including an asset management company, from holding substantive stake or voting rights in, or having board representation on, the AMC or trustee company of any other mutual fund; similarly, any shareholder holding such stake in an AMC or trustee company of a mutual fund is barred from holding equivalent stakes or board representation in another fund's AMC or trustee. Non-conforming persons must comply within one year. The Seventh Schedule proviso confirms investments in AMCs or trustee companies are governed by the clause addressing the shareholding prohibition.
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 shareholding limits bar sponsors and large shareholders from cross-holding or board seats in other fund managers.
Regulation 7B establishes shareholding and governance norms prohibiting sponsors, associates or group companies, including an asset management company, from holding substantive stake or voting rights in, or having board representation on, the AMC or trustee company of any other mutual fund; similarly, any shareholder holding such stake in an AMC or trustee company of a mutual fund is barred from holding equivalent stakes or board representation in another fund's AMC or trustee. Non-conforming persons must comply within one year. The Seventh Schedule proviso confirms investments in AMCs or trustee companies are governed by the clause addressing the shareholding prohibition.
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 
