TaxTMI 
TaxTMI 
Securities And Exchange Board Of India (Mutual Funds) Amendment Regulations, 1998
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....". 2. in regulation 7, a new clause (aa) after clause (a) and before clause (b) shall be inserted namely: "(aa) the applicant is a fit and proper person." 3. in regulation 16, sub-regulation (5) shall be substituted by the following, namely:- "(5) Two thirds of the trustees shall be independent persons and shall not be associated with the sponsors or be associated with them in any manner whatsoever." 4. in regulation 17, in sub-regulation (1), the proviso shall be omitted. 5. in regulation 18- (i) in sub-regulation (18), for the word "continuously" the word "quarterly" shall be substituted. (ii) after sub-regulation (23), a new sub-regulation (24) shall be inserted, namely;- "(24) The independent trustees referred to in sub-regulation (5) of regulation 16 shall give their comments on the report received from the asset management company regarding the investments by the mutual fund in the securities of group companies of the sponsor". 6. in regulation 21, in sub-regulation (1),- (a) a new clause (aa) after clause (a) and before clause (b) shall be inserted namely:- "(aa) the asset management company is a fit and proper person." (b) ....
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....t to the trustees", the words "at its next meeting" shall be inserted; (iii) in sub-regulation (11), after the words "with justification of such investment" the words "provided the latter investment has been made within one year of the date of the former investment calculated on either side" shall be inserted; (iv) in sub-regulation (12), after clause (b) a new clause (c ) shall be inserted, namely: "(c) a quarterly report to the trustees giving details and adequate justification about the purchase and sale of the securities of the group companies of the sponsor or the asset management company as the case may be, by the mutual fund during the said quarter." 9. in regulation 29, - (i) in sub-regulation (1), after the words "investment decision", the following words shall be inserted, namely: "including the disclosure on maximum investments proposed to be made by the scheme in the listed securities of the group companies of the sponsor."; (ii) in sub-regulation (3), the word "working" shall be inserted after the figure "21"; (iii) after sub-regulation (3), a new sub-regulation (4), shall be inserted as follows, namely: "(4) No one shall is....
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....nserted, namely:- "(1A) The mutual fund having an aggregate of securities which are worth Rs. 10 crores or more, as on the latest balance sheet date, shall subject to such instructions as may be issued from time to time by the Board settle their transactions entered on or after January 15, 1998 only through de-materialised securities." (ii) after sub-regulation (3), a new sub-regulation (4) as follows shall be inserted, namely: "(4) The mutual fund may lend securities in accordance with the Stock Lending Scheme of the Board". 17. in regulation 49, in sub-regulation (4), clause (b), shall be substituted by the following, namely: "(b) the sale price is determined with or without a fixed premium added to the future net asset value which is declared in advance". 18. in regulation 50, in sub-regulation (2) for the words "ten years", the words "eight years" shall be substituted. 19. in regulation 51, in the proviso, for the words "following year.", the words "that financial year." shall be substituted. 20. in regulation 52, - (a) in sub-regulation (4), in clause (b), (i) sub-clause (vii) shall be renumbered as sub-clause (xiii) (ii....
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....oans or" shall be omitted. (iii) in clause (vii), for the words "application form, or sales literature or other printed matter issued to prospective buyers, or advertisement, or report and/or announcement (other than an announcement of prices and yields) addressed to the general body of unitholders, or to the public, or to the press, or other communications media" the words "offer document of a scheme, key information memorandum, abridged half yearly results and annual results" shall be substituted. 26. in the Fifth Schedule, - (i) in clause 1, for the word "or", appearing after the word 'persons' and before the words 'in the interest of special class of unitholders' the word 'as" shall be substituted; (ii) in clause 5, for the word "cash", the words "bank accounts" shall be substituted. 27. in the Sixth Schedule, (i) in clause 9, the following shall be omitted: "distinction between each of them, both legally and in terms of their functions, responsibilities and obligations" (ii) a new clause 9A shall be inserted after clause 9 as follows: "9A. all advertisements containing information regarding performance, advertising yield, return or any sc....