Regulation 22 - Terms and conditions to be complied with - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Terms and conditions to be complied with 22. The approval granted under sub-regulation (2) of regulation 21 shall be subject to the following conditions, namely:- (a) any director of the asset management company shall not hold the office of the director in another asset management company unless such person is an independent director referred to in clause (d) of sub-regulation (1) of regulation 21 and approval of the Board of asset management company of which such person is a director, has been obtained; (b) the asset management company shall forthwith inform the Board of any material change in the information or particulars previously furnished, which have a bearing on the approval granted by it; (c) no appointment of a director of an asset management company shall be made without prior approval of the trustees; (d) the asset management company undertakes to comply with these regulations; 1 [(e) no change in the 2 [ control ] of the asset management company shall be made unless,- (i) prior approval of the trustees and the Board is obtained; (ii) a written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation and in a newspaper published in the language of the region where the Head Office of the mutual fund is situated; and (iii) the unitholders are given an option to exit on the prevailing Net Asset Value without any exit load;] (f) the asset management company shall furnish such information and documents to the trustees as and when required by the trustees. ************** NOTES:- 1 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2000, w.e.f. 22-5-2000. Prior to its substitution, clause (e) read as under;. *[(e) any change in controlling interest of the asset management company shall be only with prior approval of trustees, the Board and the unitholders. Provided that in case of an open ended scheme, the consent of the unitholders shall not be necessary if; (i) the change in control takes place after one year from the date of allotment of units (ii) (ii) the unitholders are informed about the proposed change in the controlling interest of asset management company by sending individual communication and an advertisement is given in one English daily newspaper having nationwide circulation and in a newspaper published in the language of the region where the head office of the mutual fund is situated. (iii) The unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.] [*this Proviso had been added by SEBI (Mutual Funds) (Amendment) Regulations., 1999,w.e.f. 8-12-1999.] 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as controlling interest