SEBI (Mutual Funds) (Amendment) Regulations, 2019

Apr 29, 2019 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on April 26, 2019, has published SEBI (Mutual Funds) (Amendment) Regulations, 2019 to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. It has come into force on the date of their publication in the Official Gazette that is April 26, 2019.

The amendments made in SEBI (Mutual Funds) Regulations, 1996 are:

•In Regulation 2, a new Clause (md) has been inserted, which specifies the definition of “goods” .

•In Regulation 2(q) and 26(1), a proviso has been added stating the mutual fund schemes investing in exchange traded commodity derivatives may hold the underlying goods in case of physical settlement of such contracts.

•In Regulation 52(4)(b) which specifies “Limitation on fees and expenses on issue of schemes”, a sub-clause (xiie) has been inserted which says in case of schemes investing in exchange traded commodity derivatives, recurring expenses incurred towards storage and handling of the underlying goods, due to physical settlement of such contracts.

•In the Seventh Schedule, clause 14 has been inserted which says a mutual fund scheme may invest in exchange traded commodity derivatives subject to such investment restrictions as may be specified by the Board from time to time.

[Notification No. SEBI/LAD-NRO/GN/2019/011] 


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.