TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2022
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....1. These regulations may be called the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2022. 2. They shall come into force on the date of their publication in the Official Gazette: 3. In the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999,- I In regulation 2, sub-regulation (1), i. clause (e) shall be substituted with the following clause, namely,- "(e) "auditor" means a firm, including a limited liability partnership, constituted under the Limited Liability Partnership Act, 2008, who is eligible and qualified to audit the accounts of a company under section 141 of the Companies Act, 2013 (18 of 2013)." ii. after clause (e), the following claus....
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....(b) in sub-clause (iii), before the word "majority", the word "by" shall be inserted. v. clause (n) shall be omitted. vi. clause (p) shall be substituted with the following clause, namely,- "(p)"fraud" means a fraud as defined in sub-clause (c) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003;" vii. clause (v) shall be substituted with the following clause, namely,- "(v)"relative" means a person as defined in section 2(77) of the Companies Act, 2013 (18 of 2013)." viii. clause (aa) shall be substituted with the following clause, namely,- "(aa)"securities laws" means the Act, the Securities C....
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....r providing for depreciation, interest and tax in three out of the immediately preceding five years, including the fifth year; and (iv) the applicant has a net worth of not less than rupees fifty crores on a continuous basis: Provided that the applicant shall have a networth not less than rupees hundred crore till it has profits for five consecutive years in case the requirements under sub-clause (iii) of clause (c) of this regulation is not fulfilled;" IV After regulation 9A, the following shall be inserted, namely,- "9B (1) No Collective Investment Management Company or a promoter of a Collective Investment Management Company, their associates or group companies, through the schemes of the Collective Investment Management Company o....
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....ion shall be complied with within a period of one year of coming into force of such an arrangement." V In regulation 14, i. in clause (m), the symbol "." shall be substituted with the symbol ";" ii. after clause (m), the following clause shall be inserted, namely,- "(n) the Collective Investment Management Company and its designated employees shall invest such amounts in such schemes of the Collective Investment Management Company, as may be specified by the Board from time to time." VI After sub-regulation (5) of regulation 24, the following shall be inserted, namely,- "Closure of subscription list (6) Each collective investment scheme shall immediately after the closure of the subscription list comply with the following condit....
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....rking days". IX In regulation 32, i. the words "unit certificates as soon as possible but not later than six weeks" shall be substituted with the words "the units only in dematerialized form within a period of five working days". ii. the symbol ":" shall be substituted with the symbol ".". iii. the proviso shall be omitted. X In regulation 35, after clause (d), the following clause shall be inserted, namely,- "(e) not invest more than twenty five percent of the amount raised by Collective Investment Management Company in projects owned directly or indirectly by Collective Investment Management Company." XI In Ninth Schedule, Part 1 shall be substituted with the following, namely,- "PART I -CEILING ON EXPENSES The expenses inc....
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....by the Collective Investment Management Company: Provided that collective investment scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily be paid from the scheme only within the regulatory limits and not from the books of the Collective Investment Management Company, its associate, promoter(s), trustee or any other entity or through any other route: Provided further that Collective Investment Management Companies shall adopt full trail model of commission in all schemes, without payment of any upfront commission or upfronting of any trail commission, directly or indirectly, in cash or kind, through sponsorships, or any other route." ....