Regulation 7C - Disassociate from the asset management company and the mutual fund - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [ 7C (1) The sponsor may be permitted to disassociate from the asset management company and the mutual fund subject to such conditions as may be specified by the Board. (2) In the event of the sponsor disassociating itself from the asset management company and the mutual fund as specified in sub-clause (1) above, the asset management company of the existing mutual fund may act as sponsor of the same mutual fund subject to such conditions and in the form and manner as may be specified by the Board. (3) In the event of the disassociation of the sponsor from the asset management company and the mutual fund, the shareholding for any shareholder in the asset management company shall be below 10%. (4) In the event of the sponsor disassociating itself from the asset management company and the mutual fund, the board of directors of such asset management company shall have at least two third independent directors. (5) If the asset management company fails to fulfill the conditions specified under sub-clause (2) above, the dissociated sponsor or any new entity may become sponsor of the mutual fund subject to such conditions as may be specified by the Board from time to time. ] *************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 01-08-2023