SEBI (MUTUAL FUNDS) (THIRD AMENDMENT) REGULATIONS, 2013 - AMENDMENT IN REGULATIONS 24 AND 26
NOTIFICATION NO. LAD-NRO/GN/2013-14/18/6384, DATED 19-8-2013
In
exercise of the powers conferred by section 30, read with clause (c) of
sub-section (2) of section 11 of the Securities and Exchange Board of
India Act, 1992 (15 of 1992), the Board hereby makes the following
regulations to further amend the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996, namely:—
1. These Regulations may
be called the Securities and Exchange Board of India (Mutual Funds)
(Third
Amendment) Regulations, 2013.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996,—
(I) in regulation 24, in clause (b), the following proviso shall be inserted, namely—
"Provided further that the asset management company may become a
proprietary trading member for carrying out trades in the debt segment
of a recognised stock exchange, on behalf of a mutual fund."
(II) in regulation 26, in sub-regulation (2), the following proviso shall be inserted, namely—
"Provided that where the sponsor or its associates hold 50 per cent
or more of the voting rights of the share capital of the custodian,
such custodian may act as custodian for a mutual fund constituted by the
same sponsor or any of its associates or subsidiary company if:
(i) the sponsor has a net worth of at least twenty thousand crore rupees at all points of time;
(ii)
50 per cent or more of the directors of the custodian are those
who do not represent the interest of the sponsor or its associates;
(iii) the custodian and the asset management company of a mutual fund are not subsidiaries of each other;
(iv) no person is a director of both the custodian and the asset management company of a mutual fund; and
(v)
the custodian and the asset management company of a mutual fund
sign an undertaking that they will act independently of each other in
their dealings with the scheme."