Regulation 49R - Duties of asset management company - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [Duties of asset management company. 49R. (1) The asset management company shall lay down an adequate system of internal controls and risk management. (2) The asset management company shall exercise due diligence in maintenance of the assets of an infrastructure debt fund scheme and shall ensure that there is no avoidable deterioration in their value. (3) The asset management company shall record in writing, the details of its decision making process in buying or selling infrastructure companies assets together with the justifications for such decisions and forward the same periodically to trustees. (4) The asset management company shall ensure that investment of funds of the Infrastructure Debt Fund schemes is not made contrary to provisions of this chapter and the trust deed. (5) The asset management company shall obtain, wherever required under these regulations, prior in-principle approval from the recognized stock exchange(s) where units are proposed to be listed. (6) The asset management company shall institute such mechanisms as to ensure that proper care is taken for collection, monitoring and supervision of the debt assets by appointing a service provider having extensive experience thereof, if required. ************** 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.