Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2001. - S.O. No.69(E) - SEBI/LE/21863/01 - SEBI

SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 13 th February, 2001 S.O. No.69(E).- In exercise of the powers conferred by sub-section (1) of section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India hereby makes the following regulations, namely :- I. (1) These regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2001. (2) They shall come into force on the date * of their publication in the Official Gazette. II. In the Securities and Exchange Board of India (Mutual Funds) Regulations 1996 :- (a) In Eighth Schedule, in clause (1), in sub-clause (v) and in clause (2) sub-clause (i) for the word, sixty , the word, thirty shall be substituted. (b) After clause (5), the following clauses shall be inserted, namely :- clause (6) - Thinly traded securities as defined in the guidelines shall be valued in the manner as specified in the guidelines issued by the Board. clause (7) - The aggregate value of illiquid securities as defined in the guidelines shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be valued in the manner as specified in the guidelines issued by Board. (2) In Ninth Schedule, for clause (g), the following shall be substituted, namely :- (g) Where income receivable on investments has accrued but has not been received for the period specified in the guidelines issued by the Board, provision shall be made by debiting to the revenue account the income so accrued in the manner specified by guidelines issued by the Board. (3) In Eleventh Schedule, in clause (3), for sub-clause (iii) the following shall be substituted namely :- (iii) The Balance Sheet shall disclose under each type of investment(s) the aggregate carrying value and market value of non-performing investments. An investment shall be regarded as non-performing if it has provided no returns in the form of dividend or interest for a period specified in the guidelines issued by the Board. [F. No. SEBI/LE/21863/01] D.R. MEHTA, Chairman Foot notes: 1. The principal regulation, SEBI (Mutual Funds) Regulations, 1996 was issued under S.O. No. 865(E) dated December 6, 1996 published In the Gazette of India, Part II, Section 3(11), dated December 9, 1996. 2. SEBI (Mutual Funds) Regulations, 1996 was subsequently amended- (a) on April 15, 1997 by SEBI (Mutual Funds) (Amendment) Regulations, 1997 vide S.O, No. 327 (E). (b) on January 12, 1998 by SEBI (Mutual Funds) (Amendment) Regulations, 1998 vide S.O. No. 32 (E). (c) on December 8, 1999 by SEBI (Mutual Funds) (Amendment) Regulations, 1999 vide S.O. No. 1223 (E). (d) on March 14, 2000 by SEBI (Mutual Funds) (Amendment) Regulations, 2000 vide S.O. No. 235 (E). (e) on May 22, 2000 by SEBI (Mutual Funds) (Second Amendment) Regulations, 2000 vide S.O. No. 484 (E).