9911796707
TMI BlogSecurities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 1999.X X X X Extracts X X X X X X X X Extracts X X X X ..... force on the date of their publication in the Official Gazette. II. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (hereinafter referred to as the said regulations),- 1. In regulation 2, for clause (y) the following clause be substituted, namely; "(y) 'Trustees' mean the Board of Trustees or the Trustee Company who hold the property of the Mutual Fund in trust for the benefit of the unitholders." 2. In regulation 18, (a) for sub-regulation (11), the following sub-regulation shall be substituted, namely; "(11) Each trustee shall file the details of his transactions of dealing in securities with the Mutual Fund on a quarterly basis," (b) in sub-regulation (15), in clause (d), the following proviso shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing appropriate registrations from the Board or concerned regulatory authority. (v) The Trustees shall arrange for test checks of service contracts. (vi) Trustees shall immediately report to Board of any special developments in the mutual fund. B. Specific Due Diligence: The Trustees shall: (i) obtain internal audit reports at regular intervals from independent auditors appointed by the Trustees. (ii) obtain compliance certificates at regular intervals from the asset management company. (iii) hold meeting of trustees more frequently. (iv) consider the reports of the independent auditor and compliance reports of asset management company at the meetings of trustees for appropriate action. (v) maintain records of the decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als. (ix) any service contract with the associates of the asset management company." 2. In Regulation 21, in sub-regulation (1), in clause (f), for the existing explanation, the following explanation shall be substituted, namely: "Explanation: For the purposes of this clause, "net worth" means the aggregate of the paid up capital and free reserves of the asset management company after deducting therefrom miscellaneous expenditure to the extent not written off or adjusted or deferred revenue expenditure, intangible assets and accumulated losses." 3. In Regulation 22, in clause (e), the following proviso shall be added, namely : "Provided that in case of an open ended scheme, the consent of the unitholders shall not be necessary if: ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tives transactions in a recognized stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines issued by the Board." 7. In the Third Schedule, after clause 19, the following clauses 20, 21 and 22 shall be inserted, namely: "20. The trust deed shall state that a meeting of the trustees shall be held at least once in every three months and at least four such meetings shall be held in every year. 21. The trust deed shall specify the quorum for a meeting of the trustees. Provided that the quorum for a meeting of the trustees shall not be constituted unless one independent trustee or director is present at the meeting. 22. The trust deed shall state that the minimum number of trustees shall be four ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . No celebrities shall form part of the advertisement." 10. In the Seventh Schedule, (i) for the existing clause 1, the following clauses 1 and 1A, shall be substituted, namely: "1. A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of asset management company. Provided that such limit shall not be applicable for investments in government securities and money market instruments". "1A. A mutual fund scheme shall not invest more t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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