Section 11AA - Collective investment scheme - Securities and Exchange Board of India Act, 1992

1 [Collective investment scheme. 11AA. (1) Any scheme or arrangement which satisfies the conditions referred to in sub-section (2) 2 [or sub-section (2A)] shall be a collective investment scheme: 3 [Provided that any pooling of funds under any scheme or arrangement, which is not registered with the Board or is not covered under sub-section (3), involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme.] (2) Any scheme or arrangement made or offered by any 4 [person] under which,- (i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement; (ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement; (iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; (iv) the investors do not have day-to-day control over the management and operation of the scheme or arrangement. 5 [(2A)] Any scheme or arrangement made or offered by any person satisfying the conditions as may be specified in accordance with the regulations made under this Act.] (3) Notwithstanding anything contained in sub-section (2) 6 [or sub-section (2A)], any scheme or arrangement- (i) made or offered by a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State; (ii) under which deposits are accepted by non-banking financial companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934); (iii) being a contract of insurance to which the Insurance Act, 1938 (4 of 1938), applies; (iv) providing for any Scheme, Pension Scheme or the Insurance Scheme framed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952); (v) under which deposits are accepted under section 58A of the Companies Act, 1956 (1 of 1956); (vi) under which deposits are accepted by a company declared as a Nidhi or a mutual benefit society under section 620A of the Companies Act, 1956 (1 of 1956); (vii) falling within the meaning of Chit business as defined in clause (d) of section 2 of the Chit Fund Act, 1982 (40 of 1982); (viii) under which contributions made are in the nature of subscription to a mutual fund; 7 [(ix) such other scheme or arrangement which the Central Government may, in consultation with the Board, notify,] Shall not be a collective investment scheme.] ************** 1 Inserted by the SEBI (Amendment) Act 1999, w.e.f. 22-2-2000. 2 Inserted by the Securities Laws (Amendment) Act, 2014, w.r.e.f. 18-07-2013. 3 Inserted by the Securities Laws (Amendment) Act, 2014, w.r.e.f. 18-07-2013. 4 Substituted for ―company‖ by the Securities Laws (Amendment) Act, 2014, w.r.e.f. 18-07-2013. 5 Inserted by the Securities Laws (Amendment) Act, 2014, w.r.e.f. 18-07-2013. 6 Inserted by the Securities Laws (Amendment) Act, 2014, w.r.e.f. 18-07-2013. 7 Inserted by the Securities Laws (Amendment) Act, 2014, w.r.e.f. 18-07-2013.