TMI BlogSecurities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2011.X X X X Extracts X X X X X X X X Extracts X X X X ..... rtake any business activities other than in the nature of management and advisory services provided to pooled assets including offshore funds, insurance funds, pension funds, provident funds, if any of such activities are not in conflict with the activities of the mutual fund: Provided that the asset management company may itself or through its subsidiaries undertake such activities, as permitted under clause (b), if, - (i) it satisfies the Board that bank and securities accounts are segregated activity wise; (ii) it meets with the capital adequacy requirements, if any, separately for each such activity and obtain separate approval, if necessary under the relevant regulations; (iii) it ensures that there is no material conflict of interest across different activities; (iv) the absence of conflict of interest shall be disclosed to the trustees and unit holders in scheme information document and statement of additional information; (v) there are unavoidable conflict of interest situations, it shall satisfy itself that disclosures are made of source of conflict, potential 'material risk or damage' to investor interests and detailed parameters for the same; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... management company shall not carry out its operations including trading desk, unit holder servicing and investment operations outside the territory of India: Provided that the asset management company having any of its operations outside India shall wind up and bring them within the territory of India within a period of one year from the date of notification of Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2011: Provided further that the Board may grant a further period of one year if it is satisfied that there was sufficient cause for not winding up of the operation outside India within that period. (iii) in regulation 36, after sub-regulation (3), the following new sub-regulation shall be inserted, namely:- (4) The asset management company shall ensure that consolidated account statement for each calendar month is issued, on or before tenth day of succeeding month, detailing all the transactions and holding at the end of the month including transaction charges paid to the distributor, across all schemes of all mutual funds, to all the investors in whose folios transaction has taken place during that month: Provided that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) an Infrastructure Finance Company registered with Reserve Bank of India as Non-Banking Financial Company; (ii) a Scheduled Commercial Bank; (iii) International Multilateral Financial Institution. 49M. Applicability (1) The provisions of this chapter shall apply to infrastructure debt fund schemes launched by mutual funds. (2) All other provisions of these regulations and the guidelines and circulars issued thereunder, unless the context otherwise require or repugnant to the provisions of this chapter, shall apply to infrastructure debt fund schemes, trustees and asset management companies in relation to such schemes. 49N. Eligibility criteria for launching infrastructure debt fund scheme (1) An existing mutual fund may launch an infrastructure debt fund schemes if it has an adequate number of key personnel having adequate experience in infrastructure sector. (2) A certificate of registration may be granted under regulation 9 to an applicant proposing to launch only infrastructure debt fund schemes if the sponsor or the parent company of the sponsor:- (a) has been carrying on activities or business in infrastructure financing sector for a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the purpose of facilitating or promoting investment in infrastructure or bank loans in respect of completed and revenue generating projects of infrastructure companies or special purpose vehicle. (2) Subject to sub-regulation (1), every infrastructure debt fund scheme may invest the balance amount in equity shares, convertibles including mezzanine financing instruments of companies engaged in infrastructure, infrastructure development projects, whether listed on a recognized stock exchange in India or not; or money market instruments and bank deposits. (3) The investment restrictions shall be applicable on the life-cycle of the infrastructure debt fund scheme and shall be reckoned with reference to the total amount raised by the infrastructure debt fund scheme. (4) No mutual fund shall, under all its infrastructure debt fund schemes, invest more than thirty per cent of its net assets in the debt securities or assets of any single infrastructure company or project or special purpose vehicles which are created for the purpose of facilitating or promoting investment in infrastructure or bank loans in respect of completed and revenue generating projects of any single inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licy approved by the board of asset management company shall be disclosed in the scheme information document. (5) The net asset value of every infrastructure debt fund scheme shall be calculated and declared at least once in each quarter. 49R. Duties of asset management company (1) The asset management company shall lay down an adequate system of internal controls and risk management. (2) The asset management company shall exercise due diligence in maintenance of the assets of an infrastructure debt fund scheme and shall ensure that there is no avoidable deterioration in their value. (3) The asset management company shall record in writing, the details of its decision making process in buying or selling infrastructure companies' assets together with the justifications for such decisions and forward the same periodically to trustees. (4) The asset management company shall ensure that investment of funds of the Infrastructure Debt Fund schemes is not made contrary to provisions of this chapter and the trust deed. (5) The asset management company shall obtain, wherever required under these regulations, prior in-principle approval from the recognized stock ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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