The Securities and Exchange Board of India (SEBI) on August 25, 2022, has decided that AMCs shall ensure scheme-wise disclosure of investments, as on the last day of each quarter, in securities of such entities that are excluded from the definition of associate.
SEBI has amended the definition of “associate” as per clause (c) of sub-regulation (1) of regulation 2 of SEBI (Mutual Funds) Regulations, 1996 vide Gazette Notification No. SEBI/LAD-NRO/GN/2022/92 dated August 03, 2022. The revised definition of Associate is as under “associate” includes a person, —
(i)who directly or indirectly, by himself, or in combination with relatives, exercises control over the asset management company or the trustee or the sponsor, as the case may be, or
(ii)in respect of whom the asset management company or the trustee or the sponsor, directly or indirectly, by itself, or in combination with other persons exercises control, or
(iii)whose director except for an independent director, officer, or employee is a director, officer, or employee of the asset management company:
Provided that the above definition of associate shall not be applicable to such sponsors, which invest in various companies on behalf of the beneficiaries of insurance policies or such other schemes as may be specified by the Board from time to time.
Disclosure of Investment shall include ISIN-wise value of investment and value as a percentage of AUM of the scheme. Such disclosure shall be made on the websites of respective AMCs and on the website of AMFI, within one month from the close of each quarter.
[Notification No. SEBI/HO/IMD/DOF2/P/CIR/2022/11]
