The Securities and Exchange Board has notified SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022 to further amend the SEBI (Collective Investment Schemes) Regulations, 1999.
Key amendments:
- The definition of ‘designated employees has been inserted.
(ea) designated employees of the Collective Investment Management Company includes:
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- chief executive officer, chief investment officer, chief risk officer, chief information security officer, chief operation officer, fund manager, compliance officer, sales head, investor relation officer, heads of other departments and dealer of the Collective Investment Management Company;
- persons directly reporting to the chief executive officer (excluding personal assistant/ secretary);
- fund management team and research team;
- other employees as identified by Collective Investment Management Companies or trustees.
- A new provision Rule 9B has been inserted dealing with voting rights of no collective investment management company.
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- No Collective Investment Management Company or a promoter of a Collective Investment Management Company, their associates or group companies, through the schemes of the Collective Investment Management Company or otherwise, individually or collectively, directly or indirectly, have (a) ten percent or more of the shareholding or voting rights in the Collective Investment Management Company or the trustee company of any other Collective Investment Management Company; or (b) representation on the board of the Collective Investment Management Company or the trustee company of any other Collective Investment Management Company.
- Any shareholder holding ten percent or more of the shareholding or voting rights in the Collective Investment Management Company or the trustee company of a Collective Investment Management Company, shall not have, directly or indirectly,- (a) ten percent or more of the shareholding or voting rights in the Collective Investment Management Company or the trustee company of any other Collective Investment Management Company; or (b) representation on the board of the Collective Investment Management Company or the trustee company of any other Collective Investment Management Company:
Provided that in the event of a merger, acquisition, scheme of arrangement or any other arrangement involving the promoters of the Collective Investment Management Company, shareholders of the Collective Investment Management Company or trustee companies, their associates or group companies which results in the incidental acquisition of shares, voting rights or representation on the board of the Collective Investment Management Company or trustee companies, this regulation shall be complied with within a period of one year of coming into force of such an arrangement.
- Sub-regulation (6) of regulation 24 has been inserted dealing with closure of subscription list.
(6) Each collective investment scheme shall immediately after the closure of the subscription list comply with the following conditions, namely,-
(a) minimum subscription amount of rupees twenty crore;
(b) minimum twenty investors; and
(c) no person shall hold more than twenty-five percent of the assets under management of scheme:
Provided that where the collective investment scheme fails to comply with this sub- regulation, Collective Investment Management Company shall be liable to refund the application money to the applicants.