Regulation 14 - Obligations of Collective Investment Management Company - Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999

Obligations of Collective Investment Management Company 14. Every Collective Investment Management Company shall: (a) be responsible for managing the funds or properties of the 1 [collective investment scheme] on behalf of the unit holders; (b) take all reasonable steps and exercise due diligence to ensure that the 2 [collective investment scheme] is managed in accordance with the provisions of these regulations, offer document and the trust deed; (c) exercise due diligence and care in managing assets and funds of the 3 [collective investment scheme]; (d) be responsible for the acts of commissions and omissions by its employees or the persons whose services have been availed by it; (e) remain liable to the unit holders for its acts of commission or omissions, notwithstanding anything contained in any contract or agreement; (f) be incompetent to enter into any transaction with or through its associates, or their relatives relating to the 4 [collective investment scheme]: Provided that in case the Collective Investment Management Company enters into any transactions relating to the 5 [collective investment scheme] with any of its associates, a report to that effect shall immediately be sent to the trustee and to the Board. (g) appoint registrar and share transfer agents; (h) abide by the Code of Conduct as specified in the Third Schedule; (i) give receipts for all monies received by it and give a report to the Board every month, particularly of receipts and payments; (j) hold a meeting of the Board of Directors to consider the affairs of 6 [collective investment scheme] at least twice in every three months; (k) ensure that its officers or employees do not make improper use of their position or information to gain, directly or indirectly, an advantage for themselves or for any other person or to cause detriment to the 7 [collective investment scheme]; (l) obtain adequate insurance against the property of the 8 [collective investment scheme]; (m) comply with such guidelines, directives, circulars and instructions as may be issued by the Board from time to time, on the subject of collective investment schemes 9 [ ; ] 10 [ (n) the Collective Investment Management Company and its designated employees shall invest such amounts in such schemes of the Collective Investment Management Company, as may be specified by the Board from time to time . ] *************** NOTES:- 1 ibid. 2 ibid. 3 ibid. 4 ibid. 5 ibid. 6 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 7 ibid. 8 ibid. 9. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/84 dated 10-05-2022 before it was read as, . 10. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/84 dated 10-05-2022