TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Mutual Funds) Regulations, 1993
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing regulations, namely:- CHAPTER I PRELIMINARY 1. Short title, commencement and application.-(1) These regulations may be called the Securities and Exchange Board of India (Mutual Funds) Regulations, 1993. (2) They shall come into force on the date of their publi cation in the Official Gazette. (3) These Regulations shall apply to all Mutual Funds except― (i) Money Market Mutual Fund established for invest- ments exclusively in Money market instruments; and (ii) Mutual Funds established outside India. 2. Definitions. In these Regulations :- (a) "Act" means the Securities and Exchange Board or India, Act 1992, (15 of 1992). (b) "advertisement" includes every form of advertising, whether in a publication, by display of notices, signs, labels or by means of circulars, catalogues or other documents, by an exhibition of pictures or photographic films, by way of sound broadcasting or television, or in any other manner. (c) "affiliate" includes a company― (i) which directly or indirectly, by itself, or in com- bination with other persons exercises a significant control over the Asset Management....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... public under one or more schemes for investing in securities in accordance with these regulations; (n) "relative" means a person as defined in Section 6 of the Companies Act, 1956 (1 of 1956); (o) "short term capital gain" shall have the same mean- ing as assigned to it in the Income Tax Act, 1961 (43 of 1961); (p) "significant control" shall mean- (i) In case of a company when any person or combl nation of persons directly or indirectly own, con trol or hold shares carrying not less than 3 per cent of the voting power of such company; (ii) as between two companies, if the same person or combination of persons directly or indirectly, own control or hold shares carrying not less than 3 per cent of the voting power of each of the two companies; (q) "sponsor" means any body corporate who, acting alone or in combination with another body corpo- rate, establishes a Mutual Fund, after initiating and completing formalities therefor; (r) "trustee" means a person who holds the property of the mutual fund in trust for the benefit of the unit- holders; (s) "units" means the interest of the investors in a Mutual Fun....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... required, appear before the Board for personal representation. 7. Consideration of application.-(1) The Board, on the basis of information furnished in the application and after obtaining such further information as may be required, shall as soon as possible but not later than three months from the date of receipt of all information, decide on the appli- cation for registration. 8. Conditions for registration.-For the purpose of grant of registration, the Board shall take into account all matters, which are relevant to efficient and orderly conduct of the affairs of a Mutual Fund and in particular the following. namely:- (a) the sponsor has a sound track record and experience in the relevant field of financial services, for a minimum period of 5 years, professional compe- tence, financial soundness and general reputation of fairness and integrity in all his business transac- tions; Explanation. For the purposes of this clause "sound track record" shall mean networth, dividend paying capacity and the profitability of the sponsor. (b) Mutual Fund is in the form of a Trust and the Trust Deed has been approved by the Bo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ming forthwith the Board, as soon as it comes to the knowledge of the sponsor or the trustees that any information or particulars previously submitted to the Board was either misleading or false in any material respect; (c) informing forthwith the Board of any material change in the information or particulars previously furnish- ed, which have a bearing on the registration granted by it; (d) the sponsor, the asset management company, trustees and the custodian comply with the provisions of the regulations; (e) allowing examination of directors, officers and other employees in the course of inspection and extending full co-operation in this behalf; (f) agreeing to produce books of accounts, documents, and such other information as sought for by the Board in the course of inspection. 13. Procedure where registration is not granted.-(1) Where an applicant does not satisfy the requirements mentioned in Regulation 8, the Board shall reject the application. (2) The decision to reject the application shall be commu- nicated to the applicant in writing stating therein the grounds on which the application has been rejected....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unit holder. (2) No Trust Deed shall contain a clause which has the effect of- (i) limiting or extinguishing the cbligations and liabilities of the Trust in relaton to any mutual Fund or the unit holders; or (ii) indemnifying of the Trustees of the Asset Manage- ment Company for loss or damage caused to the unit holders by their acts of negligence or acts of commissions or omissions. (3) The Trust Deed shall be available for inspection to any member of public at the registered office or the principal place of business of the Mutual Fund and if so desired, a copy of the same shall be made available to any person on payment of a nominal fee as may be decided by the Mutual Fund. 17. Obligations of the Trustees.-(1) The Trustees shall have a right to obtain from the Asset Management Company such information as is relevant to the mangement of the affairs concerning the operation of the Trust and may also call for periodical reports from the Asset Management Company. (2) Where the Trustees have reason to believe that the con- duct of business of the Mutual Fund is not in conformity with these Regulations they shall f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emorandum and Articles of Association of the Asset Management Company shall be submitted to the Board alongwith the application for approval under sub-regulation (1). (3) The provisions of regulations 5, 6 and 7 shall, so far s may be, apply to the application made under sub-regulation (1) of this regulation as they apply to the application for registration of a Mutual Fund." 19. Appointment of an Asset Management Company.-(1) The Shinsor or, if so authorised by the trust deed, the trasee, shall appoint an Asset Management Company, who is approved by the Board to manage the affairs of the Mutual Fund and operate the schemes of such Fund. (2) The appointment of an Asset Management Company can be terminated by majority of the Trustees, or by seventy- five per cent of the unit-holders of the scheme. (3) Any change in the appointment of the Asset Manage- ment Company shall be subject to prior approval of the Board. 20. Approval of the Asset Management Company.-For grant of approval of the Asset Management Company, the Board may take into account all matters, which are relevant to efficient and orderly conduct of the affa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... not granted.--(1) Where in application made under Regulation 18 for grant of appro- val does not satisfy the requirements laid down in Regula- tion 20, the Board may reject the application. (2) The decision to reject the application shall be com- municated to the applicant in writing stating therein the grounds on which the application has been rejected. (3) The Asset Management Company, which is aggrieved by the decision of the Board under sub-regulation (f), may, within a period of thirty days from the date of receipt of such intimation, apply to the Board for reconsideration of its decision. (4) The Board shall as soon as possible in the light of the submissions made in the application under sub-regulation (3) and wherever necessary, after giving an opportunity for per- sonal hearing, communicate its decision in writing to the applicant. 23. Restrictions on business activities of the Asset Man- agement Company.-No Asset Management Company shall- (a) act as a Trustee of any Mutual Fund; . (b) undertake any other business activities except acti- vities like financial services consultancy, exchange of research on co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ian who is not in any way associated with the Asset Management Company. 26. Approval of Custodian.-(1) The Custodian shall make an application in Form A for registration. (2) The provisions of regulations 5, 6 and 7 shall, so far as may be, apply to the application made under sub-regula- tion (1) of this regulation. (3) For grant of approval of the Custodian, the Board may take into account all matters which are relevant to efficient and orderly conduct of the affairs of the custodian and in particular the following namely:- (a) the existing custodian has a sound track record, general regulation and fairness in transactions; (b) the applicant himself or the employees are persons who have experience in providing custodian ser- vices; (c) the applicant has the infrastructure, office space and personal to provide custodian services; (d) the applicant or the director, partner are not found guilty of any economic offence; (e) the applicant is not the sponsor or trustee, of any Mutual Fund. (4) The grant of approval to the custodian shall be subject to the following terms and conditions, namely:-- (a) the custodian, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....heme from the Board. 31. Minimum amount to be raised.-(1) Minimum amounts to be raised in respect of each closed-ended and open-en- ded scheme shall be Rupees twenty crores and Rupees fifty crores respectively. Provided that there shall be no maximum limit on the amount which the Mutual Fund may collect under open ended scheme. an 32. Scheme to be kept open.-No Mutual Fund may keep a close ended scheme open for subscription for more than forty-five days: Provided that, in respect of an open ended scheme the minimum amount referred to in sub-regulation (1) of Regulation 31 shall be collected within forty- five days of the opening of subscription list. 33. Refunds. (1) The Trustees and Asset Management Company shall be liable to refund to the investors the entire amount collected if it fails to collect a minimum amount or sixty per cent of the targeted amount referred to in Regulation 31. (2) Any amount refundable under sub-regulation (1) shall be returned forthwith, but, in any case not later than six weeks from the date of the closure of the subscription list by Registered A.D. and marked "A/C Payee". (3)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate of the advertisement of the winding up the Trustee or the Asset Management Company as the case may be, shall- (a) cease to carry on any business activities; (b) cease to create and cancel units in the scheme; (c) cease to issue and redeem units in the scheine. 38. Procedure and Manner of winding up.-(1) The Trus- tee shall call a meeting of the unit holders to consider and pass necessary resolutions by simple majority of the unit holders present and voting at the meeting for authorising the Trustees or any other person to take steps for winding up of the scheme. (2) (a) The Trustee or the person authorised under sub- regulation (1) shall dispose of the assets of the scheme con- cerned in the best interest of the unit holders of that scheme. (b) The proceeds of sale made in pursuance of clause (a) above, shall, in the first instance be utilised towards dis- charge of such liabilities as are properly due under the scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the unit holders in proportion to their res- pective interest in the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion, the Asset Management Com- pany shall make a fair and independent valuation, so as to reflect its true realisable value, subject to the condition that the method of valuation shall be approved by the Trustees and commented upon by the auditors in the annual report of the Fund. 45. Computation of Net Asset Value (1) Every Mutual Fund shall follow a formula, approved by the Board, for computing the Net Asset value (NAV) for each of its Schemes. (2) The net Asset Value shall be calculated and published at least in two daily newspapers at intervals of not exceeding (a) one month in respect of open ended schemes; and (b) three months in respect of close ended schemes. 46. Pricing of Units-(1) The scheme may also provide for the price at which the units may be subscribed or sold to the independent participants in the scheme and the price at which such units may at any time be repurchased by the Mutual Fund. (2) The Mutual Fund shall periodically publish atleast once a week the sale and repurchase pprice of units in a manner as would make the information accessible to all the investors concerned. (3) While determining t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... exceed Rs. 100 crores, and (b) One per cent of the excess amount over Rs. 100 crores, where net assets so calculated exceed Rs. 100 crores. (ii) In addition to the fees mentioned in clause (i) above, the Asset Management Company may charge the Mutual Fund with the following expenses namely:- (a) initial issue costs of sponsoring the fund and its schemes; (b) recurring expenses including- (i) marketing and selling expenses including agent's commission, if any, (ii) brokerage and transaction costs, (ii) registrar services for transfer of shares sold ог redeemed: Provided that initial issue expenses in respect of any one scheme shall not exceed six per cent of the fund raised under that scheme. (3) The expenses referred to in sub-regulation (2) and any fees payable to Asset Management Company shall be charg- ed to the Mutual Fund. 51. Distribution of dividend and limits thereof-Every Mutual Fund shall, as soon as may be, after the closing of the annual accounts, distribute by way of dividend to the 42 THE GAZETTE OF INDIA: EXTRAORDINARY holders of the units in accordance with these regulations, an ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r: Provided that the Annual Report and abridged summary thereof shall contain details as specified in Schedule VII and VIII and such other details as are necessary for the pur- pose of providing a true and fair view of the operations of the Mutual Fund : Provided further that, whenever the report is published in summary from such publication shall carry a note that full Annual Report shall be available for inspeciion at the Head Office of the Mutual Fund and if so required. a copy there- of shall be made available on payment of such nominal fees as may be specified by the Mutual Fund : 55. Periodic disclosures.-(1) The Mutual Fund, the Asset Management Company, the Trustees. Custodian, Sponsor of the Mutual Fund shall make such disclosures or submit such documents as they may be called upon to do so by the Board. [PART III-SEC. 4] (2) Without prejudice to the generality of sub-regulation (1), the Mutual Fund shall furnish the following periodic reports to the Board namely -- (a) Copies of the duly audited annual statements of account including the balance sheet and the profit and loss account for the fund and in resp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecting authority to under- take the inspection of the books of accounts, records and documents of the Mutual Fund, the Trustees, Asset Manage- ment Company and Custodian for any of the purposes spe- cified in sub-regulation (2). (2) The purposes referred to in sub-regulation (1) may be as follows, namely:-- (a) to ensure that the books of account and other books. are being properly maintained; (b) that the provisions of the Act and regulations are being complied with; (c) to review the role of the Mutual Fund, Trustees or Asset Management Company in the case of take- overs; (d) to investigate into the complaints received from in- vestors, other mutual funds, or any other person on any matter having a bearing on the activities of [à¤à¤¾à¤— III-खंड 4 ] à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° असाधारण the Mutual Fund, Trustees, Asset Management Com- pany and Custodian; and (e) to investigate suo-moto in the interest of securities business or invesors' interest into the affairs of the Mutual Fund, Asset Management ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ustodian. (4) It shall be the duty of every director, proprietor, part- ner, officer or employee of the Mutual Fund, Asset Manage- ment Company, Trustee or Custodian to give to the inspect- ing authority all assistance in connection with the inspection. 63. Submission of report to the Board.-The inspecting authority shall, as soon as may be possible, submit an ins- pection report to the Board, 64. Communications of findings, etc. to the Mutual Fund.- The Board shall after consideration of the inspection report communicate the findings to the concerned person to give him an opportunity of being heard before any action is taken by the Board on the findings of the inspecting authority. anything 65. Appointment of Auditor.-Notwithstanding contained in any regulation of this chapter, the Board shall have the power to appoint an auditor to investigate into the books of accounts or the affairs of the Mutual Fund, Trustee or Asset Management Company or Custodian on the basis of the report of the investigating authority under regulation 63: Provided that the Auditor so appointed shall have the same powers of the inspecting au....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the Mutual Pand fails to maintain the networth in accordance with the provisions of regulation 20; (vii) Mutual Fund fails to pay the fees; (viii) Mutual Flad violaes the conditions of registration; (ix) Mutual Fund, Asset Management Company or True- tees of that Mutual Fund does not carry out As obligations as specified in the regulations. 44 THE GAZETTE OF INDIA: EXIRAORDINARY 68. Cancellation of registration of Mutual Fund.-A. penalty of cancellation of registration of Mutual und may be imposed if- a (i) the Mutual Fund, Asset Management Company. Trustee of that Mutual Fund indulges in deliberate manipulation or price rigging or cornering activi tics affecting the securities market and the investors interest; (ii) the financial position of the Mutual Fund deterior- ates to such an extent that the Board is of the opinion that its continuance is not in the interest of investors and other Mutual Funds; (iii) the Mutual Fund, Asset Management Company, Trus- tee or custodian is guilty of fraud, or is convicted of a criminal offence. 69. Manner of order of suspension and cancellation.-No order of pena....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he receipt of the show-cause notice send a reply to the Board. (3) The Board, after considering the reply, to the show- cause notice, if received, shall as soon as possible but not later than thirty days from the receipt of the reply. if any, pass such order as it deems fit. [PART III-SEC. 4] (4) Every order passed under sub-regulation (3) shall be self contained and give reasons for the conclusions stated therein including justification of the penalty imposed by that order. (5) The Board shall send a copy of the order under sub- regulation (3) to the Mutual Fund and the Central Govern- ment. 72. Effect of suspension and cancellation of registration of Mutual Fund (1) On and from the date of the suspension, the Mutual Fund shall cease to carry on any activity related to mutual fund during the period of suspension. (2) On and from the date of cancellation the Mutual Fund shall cease to carry on any activity related to that mutuar fund. 73. Publication of order suspension,--The order of sus- pension or cancellation of registration passed under sub- regulation (3) of regulation 71, shall be published in atleast ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, experience, qualification and profession of the Directors Names of key personnel Organisational structure Board of Directors of associate organisations, com- panies and subsidiaries (13) Names and Addresses of the Bankers of the Spon- sor (14) Names and Addresses of the Auditors of the Sponsor (15) Court Cases/Litigations in which the Sponsor may have been involved in the last three years ANNEXURE IA CONDENSED FINANCIAL INFORMATION (A) Income statement INCOME: Dividend Trading Management fee Other Income Total EXPENSES : Director's remuneration Trusteeship fecs Custodian fees Registar's fees Total Other expenses Gross Profit Depreciation Net Profit before tax Тах Profit after tax Dividends Retained Earnings (Rs.) YEARS 1 2 3 4 5 ANNEXURE IB (B) Assets and Liabilities ASSETS Fixed Assets Gross Depreciation Net value YEARS 1 2 3 4 5 (Rs) LESS CURRENT ASSETS Investments* Others (please specify) Cash and bank balances Current liabilties and Provisions NET WORTH REPRESENTED BY: Issued and Paid up capital F....
X X X X Extracts X X X X
X X X X Extracts X X X X
....istribution of income and gains and accounting. 46 THE GAZETTE OF INDIA: EXTRAORDINARY (e) Policies for disclosures of scheme objectives and investment objectives in offer documents and adver- tisements and annual and half-yearly reporting re- quirements to the investors of various schemes of the Fund. (f) Right of the trustees to obtain necessary informa tion from Asset Management Company besides obtaining a qarterly report from the Asset Manage ment Company. (g) Right to make spot checks on the Asset Manage- ment Company regarding pricing of units and payment into and out of the Fund and proper accounting of the income of the fund and charging of expenses as permitted, distribution as permited (h) Public availability of the trust deed ANNEXURE III ASSET MANAGEMENT COMPANY IN CASE THE ASSET MANAGEMENT COMPANY (hereinfater referred to as AMC) IS NOT AN EXISTING (1) Name of the AMC COMPANY (2) Proposed registered office/correspondence Address Telephone Nos. Telex Nos. Fax Nos. (3) Name of the contact person (4) Proposed objects of the AMC (enclose copy of the draft Articles antl Memoran- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l be provided in the Trust Deed. 17. The Trust Deed shall provide that no amendment to the Trust Deed shall be carried out without the prior approval of the Board and unitholders is obtained. 18. The removal of the Trustee in all cases would require the prior approval of the Board. ANNEXURE IIIA CONDENSED FINANCIAL INFORMATION (A) INCOME STATEMENT INCOME: Dividend 'Trading Management fee Other Income Total EXPENSES: Director's remuneration Trusteeship fees Custodian fees Registrar's fees Other expenses Total Gross Profit Depreciation Net profit before tax Tax Profit after tax Dividends Retained Earnings (Rs.) YEARS 1 2 3 4 5 ANNEXURE IUB (B) ASSETS AND LIABILITIES ASSETS LESS Fixed Assets Gross Depreciation Net value CURRENT ASSETS Investmentâ‘ Others (please specify) (Rs.) YEARS 1 2 3 4 5 Cash and bank balances Current Liabilities and Provisions NET WORTH REPRESENTED BY: Issued and Paid up capital Free Reserves (excluding revaluation reserves) TOTAL provide full particulars of investments [à¤à¤¾à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the trust property to the extent of the Trustees to act in the interest of the unitholders. 5. The Trust Deed shall provide that it would be the duty of the Trustees to act in he interest of the uniholders. 6. The Trust Deed shall provide that it is the duty of Trustees to provide or cause to provide information to unit- of the Trustees to act in the interest of the unitholders. shall 7 The Trust Deed shall provide that the Trustees appoint an Asset Management Company approved by the Board, to float schemes for the Mutual Fund after approval by the Trustees and Board, and manage the funds mobilised under various schemes, in accordance with the provisions of the Trust Deed and Regulations. The Trustees shall enter 47 into an Investment Management Agreement (IMA) (herein- after referred to as IMA) with the Asset Management Com- pany for this purpose, and shall enclose the same with the Tinst Deed. 8. MANAGEMENT OF THE AMC Board of the company with names of the Directors, experience, qualification and profession Names of key personnel Proposed Organisational structure Board of Directors of associate organisation....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rite, and Exchange Board of India, (Mutual Fund) Re- gulation, 1992. We further agree that as a condition of registration, we shall abide by such operational instructions/directives which anay be issued by Securities and Exchange Board of India frem 'me to time. For and on behalf of - Date: Place: (Name of the applicant/Sponsor) FORM B SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS, 1993 (regulation 9) CERTIFICATE OF REGISTRATION I. In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992. (15 of 1992) read with the Securities and Exchange Board of India (Mutual Fund) Regulations, 1993 made thereunder the Board hereby grants a certificate of registration to as a Mutual Fund. II. Registration Code for the Mutual Fund is MF/ / / Date By order Sd/. For and on behalt Securities and Exchange Board of India SCHEDULE IV SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS, 1993 (regulation 17) CONTENTS OF THE INVESTMENT MANAGEMENT AGREEMENT The Investment Management Agreement shall contain the following provisi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rmation concerning the operations of the various schemes of the Mutual Fund managed by the AMC at such intervals and in such a manner as required by the Trusices to ensure that the AMC is complying with the provisions of the Trust Deed, and Regulations; (x) the AMC shall subinit quarterly report on the func- tioning of the schemes of the Mutual Fund to the Trustees or at such intervals as may be required by the Trustees or Board; (xi) the Trustees shall have the power to dismiss the AMC under the specific events only with the approval of Board in accordance with the Regulations. SCHEDULE V SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS, 1992 (regulation 28) ADVERTISEMENT CODE 1. An advertisement shall be truthful, fair and clear and shall not contain a statement, promise or forecast which is untrue or misleading. 2. An advertisement shall be considered to be misleading if it contains - (a) Misleading Statements:-Representations made about the performance or activities of the mutual fund in the absence of necessary explanatory or qualifying statements, and which may give an exaggerated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns, responsi- bilites and obligations. 10. All advertisements shall also make a clear statement to the effect that all Mutual Funds and securities investments are subject to market risks, and there can be no assurance that the Fund's objectives will be achieved. Fund 11. If however, in any Advertisement a Mutual guarantees or assures any minimum rate of return or yield to prospective investors, resources to back such a guarantee shall also be indicated. 12. If any existing Mutual Fund indicates the past per- formance of the Fund in advertisements, the basis for com- puting the rates of return/lied and aadjustments made (if any) must be expressly indicated with a statemen: that, such in- formation is not necessarily indicative of future results and may not necessarily provide basis for comparison with other investments. SCHEDULE VI SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUND) REGULATIONS, 1993 (Regulation 41) RESTRICTIONS ON INVESTMENTS 1. Debt instruments should be rated as investment grado by a credit rating agency : Provided that if the debt instrument is not rated, the specific approval of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 54) ANNUAL REPORT The annual report shall contain- (i) Report of the Board of Trustees on the operations of the various schemes of the fund and the fund as a whole during the year and the future outlook of the fund; (ii) Balance Sheet and Revenue Account in accordance with paras 2 and 3 respectively of this schedule; (iii) Auditor's Report in accordance with the paragraph 4 of this Schedule; (iv) Brief statement of the Board of Trustees on the following aspects, namely:- (a) Liabilities and responsibilities of the Trustees and the Settlor; (b) Investment objective of each scheme; (c) Basis and policy of investment underlying the scheme; (d) If the scheme permits investment partly or wholly in shares. bonds, debentures and other scripts or securities whose value can fluctuate, a statement on the following lines: "The price and redemp- tion value of the units. and income from them, can go up as well as down with the fluctuations in the market value of its underlying invest- ments." (v) Statement giving relevant perspective historical 'per unit statistics in accordance with paragraph 5 of this sched....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the profit/loss on sale of investment's to third parties. (ii) Accounting policy in respect of recognition of reve- nue and income from investments (including divi- dend and interest) should be disclosed. (iv) Unprovided depreciation in value of investments representing the difference between their aggregate market value and their carrying cost shall be dis- closed by way of a note forming part of the Re- venue Account. Conversely, unrealised profit on investment representing the difference between their aggregate market value and carrying cost, shall be disclosed by way of note to accounts. The Revenue Account shall indicate the appropriation of surplus by way of transfer to reserves, and dividend distributed. (v) The Balance Sheet and the Revenue Account shall be signed by schemewise fund manager/s and the Board of Trustees. [refer note (iv) to Annexure 2]. 4. Auditor's Report (1) All mutual funds shall be required to get their accounts audited in terms of the provisions to that effect in their trust [PART III-SEC. 4] deeds. The Auditor's Report shall form a part of the Annual Report. It should accompany the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the [à¤à¤¾à¤— III खंड 4 ] recognised stock exchange; (v) Calls paid in advance; (vi) Term Loan's; à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° असाधारण (i) Unit Capital; (vii) Central and State Government Securities (including treasury bills); (viii) Commercial Paper; (ix) Others; - Accounting policy of valuation of investments should be disclosed. If investments are carried at cost or written down cost their aggregate market value shall be stated separately in respect of each of the above type of investments. of Aggregate carrying amount and market value non-performing investments shall be disclosed sepa- rately under each type of investment, Investment shall be regarded as non-performing if it has pro- duced no returns of dividend or interest for more than two years at the end of the accounting year of the mutual fund. HI. DEPOSITS Distinguishing between: Deposits with scheduled banks; Deposits with Companies/Institutions; Others; IV. OTHER CURRENT ASSETS Distinguishing between :: Ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ount overdrawn as per books; Unclaimed distributed income; Others; PROVISIONS: - to of expenses as their write-off - CONTENTS OF SCHEMEWISE BALANCE SHEET LIABILITIES SIDE OF THE BALANCE SHEET Liabilities side of the balance sheet be divided into the following groups: - Provision for loss/depreciation in value of invest- ments (separately with reference to each type of investment); Provision for doubtful deposits; Provision for outstanding and accrued income con- sidered doubtful; - Provision for gratuity; - Provision for staff welfare fund; Proposed income distributed on initial capital and unit-capital; Other provisions ; 189 GI/93-8 52 - THE GAZETTE OF INDIA: EXTRAORDINARY ANNEXURE 2B (refer para 3) CONTENTS OF REVENUE ACCOUNT Dividend; Interest; Profit on sale/redemption of investments (other than inter-scheme transfer/sale); Profit on inter-scheme transfer/sale of investments; Other income (indicating nature); EXPENSES AND LOSSES - - - - - Provision for depreciation in value of investments; Provision for outstanding accrued income consi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es 1.2 Privately Placed Debentures/Bonds 1.3 Debentures & Bonds Listed/Await- ing Listing on recognised Stock Ex- change Term Loans Government Securities 1.4 1.5 1.6 Others 2. Deposits 2.1 With Scheduled Banks 2.2 With Others 3. Other Current Assets 3.1 Cash & Bank Balance 3.2 Others 4. Fixed Assets S. (At Depreciated Value) Deferred Revenue Expendituro (to the extent not written off) à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° असाधारण 53 Current year Previous Current Previous year year year Current year Previous year Current year TOTAL Note*:1. Accounting Policy of valuation of investments should be disclosed. 2. If investments are carried at cost or written down cost their aggregate market, values should be stated separately in respect of each of the above type of investments. 3. Aggregate carrying amount and market value of non-performing investments should be disclosed separaicly under each type of investment. Investment should be regarded as non peforming if it has ....