Regulation 11 - Terms and conditions to be complied with - Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999

Terms and conditions to be complied with 11. The certificate granted under regulation 10 shall be subject to the following conditions, namely:- (a) any director of the Collective Investment Management Company shall not be a director in any other Collective Investment Management Company unless such person is an independent director referred to in clause (g) of regulation 9 and approval of the board of Collective Investment Management Companies of which such person is an independent director, has been obtained; (b) the Collective Investment Management Company shall forthwith inform the Board of any material change in the information or particulars previously furnished, which have a bearing on the certificate granted by it; (c) appointment of a director of a Collective Investment Management Company shall be made with the prior approval of the trustee; (d) the Collective Investment Management Company shall comply with provisions of the Act and these regulations; (e) no change in the controlling interest of the Collective Investment Management Company shall be made without obtaining prior approval of the Board, the trustee and the unit holders holding at least one-half of the nominal value of the unit capital of the 1 [collective investment scheme]; (f) the Collective Investment Management Company shall take adequate steps to redress the grievances of the investors within 3 [ twenty-one calendar days ] from the date of receipt of the complaint from the aggrieved investor; 2 [(g) the Collective Investment Management Company shall enter into an agreement with a depository for dematerialization of the units of collective investment scheme proposed to be issued; (h) all monies payable towards subscription of units of collective investment scheme shall be paid through cheque or demand draft or through any other banking channel, but not by cash; (i) the Collective Investment Management Company shall comply with KYC (know your client) norms as specified by the Board.] ******** 1 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 2 Inserted, ibid. 3. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/146 dated 16-08-2023 before it was read as, one month