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

The Securities and Exchange Board of India (SEBI), on May 29, 2018, has made the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2018 to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

In the SEBI (Mutual Funds) Regulations, 1996, the following Regulations have been amended:

a.       in Regulation 48(2), the words “published in at least two daily newspapers having circulation all over India” shall be substituted with the words “disclosed in the manner specified by the Board”.

b.      in Regulation 49(1), the words “in the manner specified by the Board” shall be inserted after the word “investors” and before the symbol “.”.

c.       the in Regulation 49(2) shall be substituted with the following, namely, —

“The mutual fund shall provide the methodology of calculating the sale and repurchase price of units in the manner specified by the Board.”

d.      in Regulation 52(6A), in clause (c), —

i.           the figure “0.20” shall be substituted with the figure “0.05”;

ii.         after the words “net assets of the scheme”, the words and symbol “or as specified by the Board:” shall be inserted;

iii.       the following new proviso shall be inserted, namely,—

“Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable.”

e.      in Regulation 56, the existing title shall be substituted with the following, namely, - “Providing copies of Annual Report and summary thereof”

f.        in Regulation 56(1),—

i.           the word “mailed” shall be substituted with the word “provided”.

ii.         after the words “relevant accounts year”, the words “in the manner specified by the Board” shall be inserted.

iii.       the proviso shall be omitted.

g.      inRegulation 56(2), in the proviso thereto, the word “mailed” shall be substituted with the word “provided”.

h.      after in Regulation 56(2), the following new sub-regulation shall be inserted as Regulation (3), namely –

“(3) Notwithstanding anything contained in sub-regulation (1), the mutual fund shall provide physical copy of the abridged summary of the Annual Report without any cost, if a request through any mode is received from a unitholder.”

i.        in the existing in Regulation 56(3), which shall now be re-numbered as in Regulation 56(3A), the word “mailed” appearing therein shall be substituted with the word “provided”.

j.        in Regulation 59A, —

 

i.           the words “one month” shall be substituted with the words “ten days”.

i.           after the words and symbol “scheme portfolio”, the symbols and words “, in the manner specified by the Board” shall be inserted.

ii.         the existing proviso shall be omitted.

These Amendment Regulations shall come into force on the date of their publication in the Official Gazette that is from May 30, 2018.

                     [No. SEBI/LAD-NRO/GN/2018/14]

 

URL: http://www.egazette.nic.in/WriteReadData/2018/186031.pdf