Regulation 49O - Conditions for infrastructure debt fund schemes - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [Conditions for infrastructure debt fund schemes. 49O. (1) An infrastructure debt fund scheme shall be launched either as close-ended scheme maturing after more than five years or interval scheme with lock-in of five years and 2 [specified transaction period of not more than forty five days] as may be specified in the scheme information document 3 [:] 4 [Provided that the tenure of the scheme may be extended to two years subject to approval of two-thirds of the unitholders by value of their investment in the scheme.] (2) Units of infrastructure debt fund schemes shall be listed on a recognized stock exchange, provided that such units shall be listed only after being fully paid up. (3) Mutual Funds may disclose indicative portfolio of infrastructure debt fund scheme to its potential investors disclosing the type of assets the mutual fund will be investing. (4) An infrastructure debt fund scheme shall have minimum five investors and no single investor shall hold more than fifty percent of net assets of the scheme. (5) No infrastructure debt fund scheme shall accept any investment from any investor which is less than Rupees one crore. (6) The minimum size of the unit shall be Rupees ten lakhs. (7) Each scheme launched as infrastructure debt fund scheme shall have firm commitment from the strategic investors for contribution of an amount of at least Rupees twenty five crores before the allotment of units of the scheme are marketed to other potential investors. (8) Mutual Funds launching infrastructure debt fund scheme may issue partly paid units to the investors, subject to following conditions: (a) The asset management company shall call for the unpaid portions depending upon the deployment opportunities; (b) The offer document of the scheme shall disclose the interest or penalty which may be deducted in case of non payment of call money by the investors within stipulated time; and (c) The amount of interest or penalty shall be retained in the scheme. ************ NOTES:- 1 Chapter VI-B consisting of sections 49L to 49T, inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2011, w.e.f. 30-8-2011. 2 Substituted for interval period not longer than one month by the SEBI (Mutual Funds) (Amendment) Regulations, 2013, w.e.f. 16-4-2013. 3 Substituted for . by the SEBI (Mutual Funds) (Amendment) Regulations, 2013, w.e.f. 16-4-2013. 4 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2013, w.e.f. 16-4-2013.