SEBI (Mutual Funds) (Amendment) Regulations, 2018 notified

In exercise of powers conferred by Section 30 r/w clause (c) of sub-section (2) of Section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board has amended the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 by the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2018, w.e.f. 13-03-2018.

1. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 –

A) 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.”

B) 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.”

[Notification No. SEBI/LAD-NRO/GN/2018/02]

Footnote:

1. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the Principal Regulations, were published in the Gazette of India on December 9, 1996 vide S.O. No. 856 (E).

2. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 were subsequently amended–

(1) on 15-04-1997, vide S.O. No.327 (E).

(2) on 12-01-1998, vide S.O. No.32 (E).

(3) on 08-12-1999, vide S.O. No.1223 (E).

(4) on 14-03-2000, vide S.O. No.235 (E).

(5) on 28-03-2000, vide S.O. No.278 (E).

(6) on 22-05-2000, vide S.O. No.484 (E).

(7) on 23-01-2001, vide S.O. No.69 (E).

(8) on 29-05-2001, vide S.O. No.476 (E).

(9) on 23-07-2001, vide S.O. No.698 (E).

(10) on 20-02-2002, vide S.O. No.219 (E).

(11) on 11-06-2002, vide S.O. No.625 (E).

(12) on 30-07-2002, vide S.O. No.809 (E).

(13) on 09-09-2002, vide S.O. No.956 (E).

(14) on 27-09-2002, vide S.O. No.1045 (E).

(15) on 29-05-2003, vide S.O. No. 632 (E).

(16) on 12-01-2004, vide F.No. SEBI/LAD/DOP/4/2004.

(17) on 10-03-2004, vide S.O. No. 398 (E).

(18) on 12-01-2006, vide S.O. No. 38 (E).

(19) on 22-05-2006, vide S.O. No. 783 (E).

(20) on 03-08-2006, vide S.O. No. 1254 (E).

(21) on 27-12-2006, vide F. No. SEBI/LAD/DOP/82534/2006.

(22) on 27-12-2006, vide F. No. SEBI/LAD/DOP/83065/2006.

(23) on 28-05-2007, vide F. No. 11/LC/GN/2007/2518.

(24) on 31-10-2007, vide F. No. 11/LC/GN/2007/4646.

(25) on 31-03-2008, vide F. No. 11/LC/GN/2008/21669.

(26) on 16-04-2008, vide F. No. LADNRO/ GN/2008/03/123042.

(27) on 22-05-2008, vide No. LADNRO/GN/2008/09/126202.

(28) on 29-09-2008, vide No. LADNRO/ GN/2008/24/139426.

(29) on 08-04-2009, vide No. LAD-NRO/GN/2009-10/01/159601.

(30) on 05-06-2009, vide No. LAD- NRO/GN/2009-10/07/165404.

(31) on 29-07-2010, vide No. LAD-NRO/GN/2010-11/13/13945.

(32) on 30-08-2011, vide No. LAD-NRO/GN/2011-12/27668.

(33) on 21-02-2012, vide No. LAD-NRO/GN/2011-12/38/4290.

(34) on 26-09-2012, vide No. LAD-NRO/GN/2012-13/17/21502.

(35) on 16-04-2013, vide No. LAD-NRO/GN/2013-14/03/5652.

(36) on 19-06-2013, vide No. LAD-NRO/GN/2013-14/12/6108.

(37) on 19-08-2013, vide No. LAD-NRO/GN/2013-14/18/6384.

(38) on 06-05-2014, vide No. LAD-NRO/GN/2014-15/01/1039.

(39) on 23-05-2014, vide No. LAD-NRO/GN/2014-15/03/1089.

(40) on 30-12-2014, vide No. LAD-NRO/GN/2014-15/19/1973.

(41) on 15-05-2015, No. NROOIAE/GN/2015-16/005.

(42) on 12-02-2016, vide No. SEBI/LAD-NRO/GN/2015-16/034.

(43) on 15-02-2017, vide No. SEBI/LAD/NRO/GN/2016-17/031.

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