Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulation, 2018

Mar 16, 2018 | by Avantis RegTech Legal Research Team

The Securities and Exchange Board of India (SEBI) on March 13, 2018 has made the SEBI (Mutual Funds) (Amendment) Regulations, 2018 to further amend the SEBI (Mutual Funds) Regulations, 1996.

In the SEBI (Mutual Funds) Regulations, 1996,

I.      after Regulation 7A and before Regulation 8, the following regulation shall be inserted:

“7B. Norms for Shareholding and Governance in Mutual Funds

(1) No sponsor of a mutual fund, its associate or group company including the asset management company of the fund, through the schemes of the mutual fund or otherwise, individually or collectively, directly or indirectly, have –

(a)     10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or

(b)    Representation on the board of the asset management company or the trustee company of any other mutual fund.

(2) Any shareholder holding 10% or more of the share-holding or voting rights in the asset management company or the trustee company of a mutual fund, shall not have, directly or indirectly, -

(a)     10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or

(b)    Representation on the board of the asset management company or the trustee company of any other mutual fund.

(3) Any person not in conformity with the sub-regulations (1) and (2) of this regulation, as on the date of the coming into force of this regulation shall comply with sub-regulations (1) and (2) within a period of one year from the date of the coming into force of this regulation.”

II.    in the Seventh Schedule which deals with Restrictions on Investments, to clause 2, the following proviso shall be inserted:

“Provided, investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.”

[No. SEBI/LAD-NRO/GN/2018/02]

URL: http://www.egazette.nic.in/WriteReadData/2018/183780.pdf


Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.