The Securities and Exchange Board of India (SEBI) on April 30, 2024, issued the notification regarding the Ease of doing business- Fund manager for Mutual fund schemes investing in commodities and overseas securities.
The following has been stated namely: -
• Reference is drawn to the Master Circular for Mutual Funds dated May 19, 2023.
• Clause 3.3.11 of the Master Circular has been substituted to state: -
“For commodity based funds such as Gold ETFs, Silver ETFs and other funds participating in commodities market, appointment of a dedicated fund manager shall be optional. However, the person appointed as fund manager of such funds should have adequate expertise and experience to manage investments in commodities market. The Board of the AMCs shall be responsible for ensuring compliance and reporting regarding the same to trustees, on a periodic basis.”
• Clause 12.19.3.1of the Master Circular has been substituted to state: -
“Appointment of a dedicated fund manager for making the above overseas investments stipulated under paragraph 12.19.2.1 to 12.19.2.9 shall be optional. However, the person appointed as fund manager of such funds should have adequate expertise and experience to manage investments in overseas securities. The Board of the AMCs shall be responsible for ensuring compliance and reporting regarding the same to trustees, on a periodic basis.”
[Notification No. SEBI/HO/IMD/IMD-PoD-2/P/CIR/2024/30]
