Regulation 7B - Norms for Shareholding and Governance in Mutual Funds - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [Norms for Shareholding and Governance in Mutual Funds 7B. (1) No sponsor of a mutual fund, its associate or group company including the asset management company of the fund, through the schemes of the mutual fund or otherwise, individually or collectively, directly or indirectly, have (a) 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or (b) representation on the board of the asset management company or the trustee company of any other mutual fund. (2) Any shareholder holding 10% or more of the share-holding or voting rights in the asset management company or the trustee company of a mutual fund, shall not have, directly or indirectly, - (a) 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or (b) representation on the board of the asset management company or the trustee company of any other mutual fund. (3) Any person not in conformity with the sub-regulations (1) and (2) of this regulation, as on the date of the coming into force of this regulation shall comply with sub-regulations (1) and (2) within a period of one year from the date of the coming into force of this regulation:] 2 [Provided that in the event of a merger, acquisition, scheme of arrangement or any other arrangement involving the sponsors of the mutual funds, shareholders of the asset management companies or trustee companies, their associates or group companies which results in the incidental acquisition of shares, voting rights or representation on the board of the asset management companies or trustee companies, this regulation shall be complied with within a period of one year of coming into force of such an arrangement.] ************* NOTES:- 1 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2018, w.e.f. 13-03-2018. 2 Inserted by the SEBI (Mutual Funds) (Third Amendment) Regulations, 2018, w.e.f. 06-12-2018.