The Securities and Exchange Board of India (SEBI) on May 10, 2022 has issued the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2022 to further amend the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999. This has come into force on May 10, 2022.
The following has been amended namely: -
• In Regulation 2(1)(e) which specify “Auditor” has been substituted namely: -
“’auditor’ means a firm, including a limited liability partnership, constituted under the Limited Liability Partnership Act, 2008, who is eligible and qualified to audit the accounts of a company under section 141 of the Companies Act, 2013 (18 of 2013)”
• Regulation 2(3) which has been substituted namely: -
“The words and expressions used and not defined in these regulations but defined in the Act, the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Companies Act, 2013 (18 of 2013), the Depositories Act, 1996 (22 of 1996), or any rules or regulations made thereunder shall have the same meanings respectively assigned to them in those acts, rules or regulations made thereunder or any statutory modification or re-enactment thereto, as the case may be”
• After Regulation 9 which specify “Conditions for eligibility” the following regulation 9B has been inserted namely: -
“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 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.”
• In regulation 35 which specify “Investment and Segregation of Funds” the following sub-regulation (e) has been inserted namely: -
“Not invest more than twenty five percent of the amount raised by Collective Investment Management Company in projects owned directly or indirectly by Collective Investment Management Company.”
[Notification No. SEBI/LAD-NRO/GN/2022/84]
