Regulation 24 - Procedure for launching of collective investment schemes - Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999

CHAPTER V 1 [COLLECTIVE INVESTMENT SCHEME]S OF COLLECTIVE INVESTMENT MANAGEMENT COMPANY Procedure for launching of 2 [collective investment scheme]s 24. (1) No 3 [collective investment scheme] shall be launched by the Collective Investment Management Company unless such 4 [collective investment scheme] is approved by the Trustee. Rating (2) No 5 [collective investment scheme] shall be launched by the Collective Investment Management Company without obtaining rating from a credit rating agency. Appraisal (3) No 6 [collective investment scheme] shall be launched by the Collective Investment Management Company without getting the 7 [collective investment scheme] appraised by an appraising agency. Close ended 8 [collective investment scheme] and 9 [collective investment scheme] duration (4) Collective Investment Management Company shall:- (a) launch only close ended 10 [collective investment scheme]s; (b) the duration of the 11 [collective investment scheme]s shall not be of less than three calendar years. Insurance (5) Collective Investment Management Company shall obtain adequate insurance policy for protection of the 12 [collective investment scheme]e property. 13 [ Closure of subscription list (6) Each collective investment scheme shall immediately after the closure of the subscription list comply with the following conditions, namely,- (a) minimum subscription amount of rupees twenty crore; (b) minimum twenty investors; and (c) no person shall hold more than twenty-five percent of the assets under management of scheme: Provided that where the collective investment scheme fails to comply with this sub-regulation, Collective Investment Management Company shall be liable to refund the application money to the applicants. ] ************** NOTES:- 1 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 2 ibid. 3 ibid. 4 ibid. 5 ibid. 6 ibid. 7 ibid. 8 ibid. 9 ibid. 10 ibid. 11 ibid. 12 ibid. 13. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/84 dated 10-05-2022