Regulation 86 - Networth requirement for the mutual fund lite asset management company - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [Networth requirement for the mutual fund lite asset management company. 86 . (1) The mutual fund lite asset management company shall have a networth of not less than rupees thirty five crore deployed in assets as may be specified by the Board: Provided that the mutual fund lite asset management company may bring down the networth to rupees twenty five crore in case it has profits for five consecutive years. (2) Where the sponsor does not fulfil the requirements provided in part (i) to (iv) of the Explanation to clause (a) of regulation 81 of these regulations at the time of making application, the mutual fund lite asset management company shall have a networth of not less than rupees fifty crore deployed in assets as may be specified by the Board: Provided that the mutual fund lite asset management company may bring down the networth to rupees twenty five crore in case it has profits for five consecutive years. Explanation : Any loans and advances given by a mutual fund lite asset management company to either sponsor, associates or group company of sponsor and associates or group company of mutual fund lite asset management company shall be excluded while computing the networth of the mutual fund lite asset management company. (3) The networth of the mutual fund lite asset management company as required under sub-regulation (1) or (2) of this regulation shall be maintained on a continuous basis and it shall be the responsibility of the sponsor to ensure the same. (4) Notwithstanding anything contained in sub-regulations (1) to (3), if the total assets under management of the mutual fund lite asset management company exceeds the specified thresholds, the mutual fund lite asset management company shall abide by the net worth requirements under Chapter IV of these Regulations. ] ************** NOTES:- 1. Inserted vide Notification No.SEBI/LAD-NRO/GN/2024/221 dated 16-12-2024 w.e.f. ninetieth day from the date of their publication in the Official Gazette