TaxTMI 
TaxTMI 
Obligations of mutual fund lite asset management company and its employees
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....he launch of any scheme that the mutual fund lite asset management company has- (i) established systems for its back office, dealing room and accounting; (ii) appointed all key personnel specified by the Board, including fund manager(s) for the scheme(s) and submitted their bio-data which shall contain the educational qualifications and securities market experience to the trustees, within fifteen calendar days of their appointment; (iii) appointed auditors to audit its accounts; (iv) appointed a compliance officer who shall be responsible for monitoring compliance with the Act, rules, regulations, notifications, guidelines, instructions, etc., issued by the Board or the Central Government and for addressing 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, 2025 and established parameters for their supervision; (vi) prepared a compliance manual and designed internal control mechanisms including internal audit systems; (vii) specified norms for empanelment of broker....
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....any shall ensure that purchase or sale of securities through a stock broker which is not an associate of the sponsor in excess of twenty five per cent of the aggregate value of purchases and sale of securities transacted by the mutual fund lite across all its schemes is undertaken only if mutual fund lite asset management company has recorded in writing the justification for exceeding the limit of twenty five per cent, and reports of all such investments are sent to the trustees on a quarterly basis. Explanation: The limits specified in clauses (i) and (ii) shall apply to each block of three months and shall exclude transactions relating to the sale and distribution of units issued by the mutual fund lite and such other transactions as may be specified by the Board. (6) Investment concentration disclosure: In case any company has invested more than five per cent of the net asset value of a scheme, the investment made by that scheme or by any other scheme of the same mutual fund lite in that company or its subsidiaries shall be brought to the notice of the trustees by the mutual fund lite asset management company and be disclosed in the annual accounts of the re....
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....visions of the trust deed; e. the mutual fund lite asset management company has been managing the mutual fund lite schemes independently of other activities and have taken adequate steps to ensure that the interest of investors of one scheme are not being compromised with those of any other scheme or of other activities of the mutual fund lite asset management company; f. the net worth of the mutual fund lite asset management company is reviewed quarterly to ensure continuous compliance with the threshold provided in clause (e) of sub-regulation (1) of regulation (57); g. all service contracts including for custody arrangements of the assets and transfer agency of the securities are executed in the interest of the unit holders and test checks of service contracts are arranged; h. there is no conflict of interest between the deployment of the mutual fund lite asset management company's net worth and the interest of the unit holders; i. investor complaints are periodically reviewed and redressed; j. all service providers hold appropriate registrations with the Board or relevant regulatory authority; k. any special develop....
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.... management company shall constitute a Unit Holder Protection Committee in the form and manner and with a mandate as specified by the Board. (9) Scheme management and valuation: (a) Registrars and share transfer agents (i) registrars and share transfer agents appointed by the mutual fund lite asset management company shall be registered with the Board. (ii) If the work relating to the transfer of units is processed in-house, the charges at competitive market rates may be debited to the scheme and for rates higher than the competitive market rates, prior approval of the trustees shall be obtained and reasons for charging higher rates shall be disclosed in the annual accounts. (b) Valuation and Disclosure (i) The mutual fund lite asset management company shall compute and carry out valuation of investments made by its scheme(s) in accordance with the investment valuation norms specified in Seventh Schedule of these regulations, and shall publish the same. (ii) The mutual fund lite asset management company and the sponsor of the mutual fund lite shall be liable to compensate affected investors and/or the scheme for any unfair tr....
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....t new schemes. (b) The independent directors of the mutual fund lite asset management company shall pay specific attention to the following, as may be applicable, namely: - (i) the Investment Management Agreement and the compensation paid under the agreement; (ii) service contracts with associates and whether the mutual fund lite asset management company has charged higher fees than outside contractors for the same services; (iii) selections of the mutual fund lite asset management company's independent directors; (iv) securities transactions involving associates to the extent such transactions are permitted; (v) selecting and nominating individuals to fill independent directors' vacancies; (vi) code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions; (vii) the reasonableness of fees paid to sponsors, mutual fund lite asset management company and any others for services provided; and (viii) any service contract with the associates of the mutual fund lite asset management company. (13) Meeting of the bo....