TaxTMI 
TaxTMI 
Seeks to Amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
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....ndments to clause (i) of sub-regulation (I), sub-regulation (II), sub-regulation (III), sub-regulation (IV), clause (ii) of sub-regulation (VII) and sub-regulation (XXIV) of Regulation 3 shall come into force with effect from August 1, 2023, while the amendments to clause (i) of sub-regulation (VII) of Regulation 3 shall come into force with effect from January 1, 2024. 3. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996,- I. in regulation 2, sub-regulation (1), i. after clause (n), the following clause shall be inserted, namely,- "(na) "Liquid networth" means the networth deployed in liquid assets which are unencumbered and shall include cash, money market instruments, Government Securities, Treasury bills, Repo on Government securities and any other like instruments as specified by the Board from time to time." ii. clause (qa) shall be renumbered as clause (qb) and before the clause so renumbered, the following clause shall be inserted, namely,- "(qa) "NAV" or "Net Asset Value" shall mean the value computed in the manner provided in sub-regulation (1) of regulation 48 of these regulations;" iii. in c....
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.... rupees one hundred fifty crore is locked-in for a period of five years; and (iii) appoint experienced personnel in asset management company such that the total combined experience of Chief Executive Officer, Chief Operating Officer, Chief Risk Officer, Chief Compliance Officer and Chief Investment Officer should be at least thirty years; and (iv) ensure that in case of acquisition of existing asset management company, the sponsor shall have minimum positive liquid net worth equal to incremental capitalization required to ensure minimum capitalization of the asset management company and the positive liquid net worth of the sponsor or the funds tied up by the sponsor are to the extent of aggregate par value or market value of the shares proposed to be acquired, whichever is higher; and (v) ensure that in case of acquisition of stake in an existing asset management company, the shareholding equivalent to at least rupees one hundred fifty crore shall be locked in for five years; and (vi) ensure that other conditions in this regard as may be specified by the Board from time to time are adhered to: Provided further that a private equity fund ....
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....prove the policy for empanelment of brokers by the asset management company and shall" shall be inserted; iv. in sub-regulation (14), the words "be responsible for the calculation of any income due to be paid to the mutual fund and also of any income received in the mutual fund for the holders of the units of any scheme" shall be substituted with the words "ensure that the income calculated by the asset management company under sub-regulation (25) of regulation 25 of these regulations is"; v. sub-regulation (15A) shall be substituted with the following, namely,- "(15A) The trustees shall ensure that no change in the fundamental attributes of any scheme, the fees and expenses payable or any other change which would modify the scheme and affect the interest of the unit holders is carried out by the asset management company, unless it complies with sub-regulation (26) of regulation 25 of these regulations."; vi. sub-regulation (19) shall be substituted with the following, namely,- "(19) The trustees shall periodically review the service contracts relating to custody arrangements and satisfy themselves that such contracts are executed in the....
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....directors of the asset management company shall ensure before the launch of any scheme that the asset management company has- (i) systems in place for its back office, dealing room and accounting; (ii) appointed all key personnel including fund manager(s) for the scheme(s) and submitted their bio-data which shall contain the educational qualifications and past experience in the securities market with the Trustees, within fifteen days of their appointment; (iii) appointed auditors to audit its accounts; (iv) appointed a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions, etc., issued by the Board or the Central Government and for redressal of investors grievances; (v) appointed a registrar to an issue and share transfer agent registered under the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 and laid down parameters for their supervision; (vi) prepared a compliance manual and designed internal control mechanisms including internal audit systems; (vii) specified no....
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....a Unit Holder Protection Committee in the form and manner and with a mandate as may be specified by the Board. (25) The asset management company shall be responsible for calculation of any income due to be paid to the mutual fund and also any income received in the mutual fund, for the unit holders of any scheme of the mutual fund, in accordance with these regulations and the trust deed. (26) The asset management company shall ensure that no change in the fundamental attributes of any scheme or the trust, fees and expenses payable or any other change which would modify the scheme and affect the interest of unit holders, shall be carried out unless,- (i) a written communication about the proposed change is sent to each unit holder and an advertisement is issued in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the mutual fund is situated; and (ii) the unit holders are given an option to exit at the prevailing Net Asset Value without any exit load." IX. After regulation 25, the following regulation shall be inserted, namely,- "Meeting of th....
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....luation of investments. 47. The asset management company shall compute and carry out valuation of investments made by the scheme(s) of the mutual fund in accordance with the investment valuation norms specified in the Eighth Schedule and publish the same." XVII. In regulation 48, in sub-regulation (1), the words "mutual fund" shall be substituted with the words "asset management company". XVIII. In regulation 49, in sub-regulation (2), the words "mutual fund" shall be substituted with the words "asset management company". XIX. In regulation 53, the words "mutual fund and" shall be omitted. XX. In regulation 56, in sub-regulation (3), the words "mutual fund" shall be substituted with the words "asset management company". XXI. In regulation 57, the words "Every mutual fund" shall be substituted with the words "Every asset management company". XXII. In regulation 59A, the words "A mutual fund" shall be substituted with the words "An asset management company". XXIII. In the First Schedule, in Form C,- iii. in clause (1), the words "trust company", wherever appearing, shall be substituted with the words "trustee company"; iv. clause (3) sh....
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.....O. No.235 (E). (5) On March 28, 2000 by the Securities and Exchange Board of India (Appeal to the Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide S.O. No. 278 (E). (6) On May 22, 2000 by the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2000 vide S.O. No. 484 (E). (7) On January 23, 2001 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2001 vide S.O. No.69 (E). (8) On May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide S.O. No.476 (E). (9) On July 23, 2001 by the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2001 vide S.O. No.698 (E). (10) On February 20, 2002 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2002 vide S.O. No. 219 (E). (11) On June 11, 2002 by the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2002 vide S.O. No. 625 (E). (12) On July 30, 2002 by the Securities and Exchange Board of India (Mutual Funds) (Third Amendment) Regulations, 2002 vide S.O. No. 809....
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....unds) (Third Amendment) Regulations, 2008 vide No. LADNRO/ GN/2008/24/139426. (29) On April 8, 2009 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2009 vide No. LAD-NRO/GN/2009-10/01/159601. (30) On June 5, 2009 by the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2009 vide No. LAD- NRO/GN/2009-10/07/165404. (31) On July 29, 2010 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2010 vide No. LAD-NRO/GN/2010-11/13/13945. (32) On August 30, 2011 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2011 vide No. LAD-NRO/GN/2011-12/27668. (33) On February 21, 2012 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2012 vide No. LAD-NRO/GN/2011-12/38/4290. (34) On September 26, 2012 by the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2012 vide No. LAD-NRO/GN/2012-13/17/21502. (35) On April 16, 2013 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2013 vide No. LAD-NRO/GN/2013-14/03/5652. (36) On June 19, 2....