PART IV
AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956
Commencement of this Part.
138. The provisions of this Part shall come into force on the 1st day of April, 2021.
Notes on Clauses:
Clauses 138 to 140 of the Bill seeks to amend the provisions of the Securities Contracts (Regulation) Act, 1956.
It is proposed to define the expression “pooled investment vehicle”. It is further proposed to clarify that debt securities and such other marketable securities as well as the units issued by pooled investment vehicles are “securities”.
It is also proposed to insert a new section 30B in the said Act to specify that a pooled investment vehicle, whether constituted as a trust or otherwise, shall be eligible to borrow and issue debt securities and shall be permitted to provide security interest to lenders, in terms of the facility documents, entered into by such pooled investment vehicles. It further provides that in case of default, the lenders shall recover the defaulted amount against the trust assets, by initiating proceedings against the trustee acting on behalf of the pooled investment vehicle, and whatever remains after paying the lenders shall be remitted to the unit holders.
These amendments will take effect from 1st April, 2021.
