Capital Protection Oriented scheme and Revision in Fees

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....n Memorandum (KIM) as well as in the advertisements that the scheme offered is "oriented towards protection of capital" and "not with guaranteed returns". It should also be indicated that the orientation towards protection of the capital originates from the portfolio structure of the scheme and not from any bank guarantee, insurance cover etc. The proposed portfolio structure indicated in the offer document and KIM must be rated by a SEBI registered credit rating agency from the view point of assessing the degree of certainty for achieving the objective of capital protection. Moreover, the rating should be reviewed on a quarterly basis. In this regard, the Trustees should also continuously monitor the structure of the portfolio of the....

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.... AUTHORITY SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 3rd August, 2006 SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS) (THIRD AMENDMENT) REGULATIONS, 2006 S.O No.1254 (E). - In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, namely :- 1.    These Regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Third Amendment) Regulations, 2006. 2.    They shall come into force on the date of their publication in the Official Gazette. ....

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....e) if the said scheme is a capital protection oriented scheme." (vi)  in regulation 33, after sub-regulation (2), the following sub-regulation shall be inserted, namely - "(2A) The asset management company shall not repurchase units of a capital protection oriented scheme before end of the maturity period." (vii)     after regulation 38, the following regulation shall be inserted, namely - "Capital protection oriented schemes 38A. A capital protection oriented scheme may be launched, subject to the following: (a)    the units of the scheme are rated by a registered credit rating agency from the viewpoint of the ability of its portfolio structure to....

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....of India (Mutual Funds) Regulations, 1996, the Principal Regulations were published in the Gazette of India on December 9, 1996 vide S.O. No. 856(E). (2)   The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 were subsequently amended - (a)   on April 15, 1997 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 1997 vide S.O. No.327(E). (b)   on January 12, 1998 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 1998 vide S.O. No.32(E). (c)   on December 08, 1999 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 1999 vide S.O. No.1223(E). (d)   on Mar....