SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 13th March, 2018
Securities and Exchange Board of India (Mutual Funds)
(Amendment) Regulation, 2018
No. SEBI/LAD-NRO/GN/2018/02.—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) (Amendment) Regulations, 2018.
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. after regulation 7A and before regulation 8, the following regulation shall be inserted, namely, –
“Norms for Shareholding and Governance in Mutual Funds
7B. (1) No sponsor of a mutual fund, its associate or group company including the asset management company of the fund, through the schemes of the mutual fund or otherwise, individually or collectively, directly or indirectly, have –
(a) 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or
(b) representation on the board of the asset management company or the trustee company of any other mutual fund.
(2) Any shareholder holding 10% or more of the share-holding or voting rights in the asset management company or the trustee company of a mutual fund, shall not have, directly or indirectly, –
(a) 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or
(b) representation on the board of the asset management company or the trustee company of any other mutual fund.
(3) Any person not in conformity with the sub-regulations (1) and (2) of this regulation, as on the date of the coming into force of this regulation shall comply with sub-regulations (1) and (2) within a period of one year from the date of the coming into force of this regulation.”
II. in the Seventh Schedule, to clause 2, the following proviso shall be inserted, namely,-
“Provided, investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.”
AJAY TYAGI,Chairman
[ADVT.-III/4/Exty./467/17]
