Regulation 88 - Restrictions on business activities of the mutual fund lite asset management company - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [Restrictions on business activities of the mutual fund lite asset management company. 88 . The mutual fund lite asset management company shall, - (a) not act as a trustee of any mutual fund lite; (b) not undertake any business activities other than in the nature of advisory services to pooled assets only in respect of passive investments: Provided that the asset management company may itself or through its subsidiaries undertake such activities, as permitted under clause (b), if, - (i) it ensures that there is no material conflict of interest across different activities; (ii) the absence of conflict of interest shall be disclosed to the trustees and unit holders in scheme information document and statement of additional information. (iii) there are unavoidable conflict of interest situations, it shall satisfy itself that disclosures are made of source of conflict, potential material risk or damage to investor interests and detailed parameters for the same; (iv) it ensures independence to key personnel handling the relevant conflict of interest is provided through removal of direct link between remuneration to relevant asset management company personnel and revenues generated by that activity: ] ************** 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