Regulation 45 - Carry forward transactions, derivatives transactions and short selling transactions - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [Carry forward transactions, derivatives transactions and short selling transactions. 45. (1) The funds of a scheme shall not in any manner be used in carry forward transactions: Provided that a mutual fund may enter into derivatives transactions on a recognized stock exchange, subject to the framework specified by the Board. (2) A mutual fund may enter into short selling transactions on a recognized stock exchange, subject to the framework relating to short selling and securities lending and borrowing specified by the Board.] ************* NOTES:- 1 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2007, w.e.f. 31-10-2007. Prior to its substitution, regulation 45 read as under; *[Option trading, etc. 45. The funds of a scheme shall not in any manner be used in option trading or in short selling or carry forward transactions: Provided that a mutual fund may enter into derivatives transactions in a recognised stock exchange, subject to such Guidelines as may be specified by the Board]. [*Amended by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f. 22-5-2006 and SEBI (Mutual Funds) (Amendment).]