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TMI BlogMutual fund lite asset management company and its obligationsX X X X Extracts X X X X X X X X Extracts X X X X ..... tion, the mutual fund lite asset management company or its directors or other officers shall not be absolved of liability to the mutual fund lite for their acts of commission or omission, while holding such position or office. (6) The Chief Executive Officer (whatever be the designation) of the mutual fund lite asset management company shall ensure that the mutual fund lite complies with all the provisions of these regulations and the guidelines or circulars issued in relation thereto from time to time and that the investments made by the fund managers are in the interest of the unit holders and shall also be responsible for the overall risk management function of the mutual fund lite. (7) Chief Executive Officer (whatever be the designation) shall also ensure that the mutual fund lite asset management company has adequate systems in place to ensure that the Code of Conduct for Fund Managers and Dealers specified in PART - B of the Fifth Schedule of these regulations are adhered to in letter and spirit. Any breach of the said Code of Conduct shall be brought to the attention of the board of directors of the mutual fund lite asset management company and trustees. (8) The Fund Manage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs into any securities transactions with any of its associates a report to that effect shall be sent to the trustees at its next meeting. (13) In case any company has invested more than 5 per cent of the net asset value of a scheme, the investment made by that scheme or by any other scheme of the same mutual fund lite in that company or its subsidiaries shall be brought to the notice of the trustees by the MF lite asset management company and be disclosed in the annual accounts of the respective schemes with justification for such investment provided the latter investment has been made within one year of the date of the former investment calculated on either side. (14) The mutual fund lite asset management company shall file with the trustees and the Board (a) detailed bio-data of all its directors along with their interest in other companies within fifteen days of their appointment; (b) any change in the interests of directors every six months; and (c) a quarterly report to the trustees giving details and adequate justification about the purchase and sale of the securities of the group companies of the sponsor or the mutual fund lite asset management company, as the case may be, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment; (iii) appointed auditors to audit its accounts; (iv) appointed a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions, etc., issued by the Board or the Central Government and for redressal of investors grievances; (v) appointed a registrar to an issue and share transfer agent registered under the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 and laid down parameters for their supervision; (vi) prepared a compliance manual and designed internal control mechanisms including internal audit systems; (vii) specified norms for empanelment of brokers and marketing agents; (viii) obtained, wherever required under these regulations, prior in principle approval from the recognized stock exchange(s) where units are proposed to be listed. (b) The board of directors of the mutual fund lite asset management company shall ensure that - (i) the mutual fund lite asset management company has been diligent in empanelling the brokers, in monitoring securities transactions with brokers and avoiding undue concentration of business with specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... responsible for the overall risk management of the mutual fund lite asset management company as well as the mutual fund lite schemes. (25) The independent directors of the mutual fund lite asset management company shall pay specific attention to the following, as may be applicable, namely: (i) the Investment Management Agreement and the compensation paid under the agreement, (ii) service contracts with associates and whether the mutual fund lite asset management company has charged higher fees than outside contractors for the same services, (iii) selections of the mutual fund lite asset management company s independent directors, (iv) securities transactions involving associates to the extent such transactions are permitted, (v) selecting and nominating individuals to fill independent directors vacancies, (vi) code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions, (vii) the reasonableness of fees paid to sponsors, mutual fund lite asset management company and any others for services provided, (viii) principal underwriting contracts and their renewals, (ix) any service contract with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory or legal requirements or governance vulnerability, and (b) establish procedures to ensure adequate protection of the whistle blowers. (33) The board of directors of the mutual fund lite asset management company, including any of their committees, shall meet at such frequency as may be specified by the Board from time to time. (34) The board of directors of mutual fund lite asset management company shall furnish to the Board on a yearly basis, (a) a report on the activities of the mutual fund lite; (b) a certificate stating that the board of directors of mutual fund lite asset management company have satisfied themselves that there have been no instances of self-dealing or front running by any of the trustees, directors and key personnel of the mutual fund lite asset management company; (c) a certificate to the effect that the mutual fund lite asset management company has been managing the schemes independently of any other activities and in case any activities of the nature referred to in clause (b) of regulation 88 have been undertaken by the mutual fund lite asset management company, it has taken adequate steps to ensure that the interests of the unitholders are protected. ] ..... X X X X Extracts X X X X X X X X Extracts X X X X
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