Regulation 43 - Investment objective - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

CHAPTER VI INVESTMENT OBJECTIVES AND VALUATION POLICIES 1 [Investment objective 43. (1) Subject to other provisions of these regulations, a mutual fund may invest moneys collected under any of its schemes only in- (a) securities; (b) money market instruments; (c) privately placed debentures; (d) securitised debt instruments, which are either asset backed or mortgage backed securities; 2 [***] (e) gold or gold related instruments 8 [ **** ] 11 [ (ea) silver or silver related instruments; ] 4 [(f) real estate assets as defined in clause (a) of regulation 49A 8 [ **** ] ] 6 [(g)infrastructure debt instrument and assets as specified in clause (1) of regulation 49L 9 [ ; ] ] 10 [ (h) any other assets or instruments as may be specified by the Board from time to time. ] (2) Any investment made under sub-regulation (1) shall be in accordance with the investment objective of the relevant mutual fund scheme. (3) Moneys collected under any money market scheme of a mutual fund shall be invested only in money market instruments. (4) Moneys collected under any gold exchange traded fund scheme shall be invested only in gold or gold related instruments, in accordance with sub-regulation (5) of regulation 44.] 7 [(5) Moneys collected under a real estate mutual fund scheme shall be invested in accordance with regulation 49E.] 12 [ (6) Moneys collected under any silver exchange traded fund scheme shall be invested only in silver or silver related instruments, in accordance with sub-regulation (6) of regulation 44. ] 13 [ (7) Moneys collected under Environmental, Social and Governance schemes shall be invested in the manner as specified by the Board from time to time. ] ********** 1 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2006, w.e.f. 12-1-2006. Prior to its substitution, regulation 43 read as under; Investment objective 43. The moneys collected under any scheme of a mutual fund shall be invested only in transferable securities in the money market or in the capital market or in privately placed debentures or securitised debts: Provided that moneys collected under any money market scheme of a mutual fund shall be invested only in money market instruments in accordance with directions issued by the Reserve Bank of India: Provided further that in case of securitised debts such fund may invest in asset backed securities *[and] mortgaged backed securities. [* word and substituted for the word excluding by SEBI (MF) (Second Amend.) Regulations, 2000.] 2 Word or omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. 3 Substituted for . by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. 4 Inserted ibid. 5 Substituted for . by the SEBI (Mutual Funds) (Amendment) Regulations, 2011, w.e.f. 30-8-2011. 6 Inserted, ibid. 7 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. 8. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as 3 [; or] 5 [;or] 9. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as . 10. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 11. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/56 dated 09-11-2021 w.e.f. 09-12-2021 12. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/56 dated 09-11-2021 w.e.f. 09-12-2021 13. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 26-06-2023