The Securities and Exchange Board of India (SEBI), on February 14, 2025, notified the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2025 to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
The following has been stated-
•In Chapter IV, in regulation 25, (i) after sub-regulation (16A), the following new sub-regulation shall be inserted, namely – “(16B) The asset management company shall invest a percentage of the remuneration of such employees as specified by the Board in units of mutual fund schemes based on the designation or roles of the designated employees in the manner as may be specified by the Board.” (ii) after sub-regulation (29), the following new sub-regulation shall be inserted, namely – “(30) The asset management company shall conduct stress testing for such schemes as specified by the Board and disclose the results of the stress testing in the form and manner, as may be specified by the Board.”
•In Chapter V, in regulation 35, after sub-regulation (4), the following sub-regulation shall be inserted, namely, — “(5) The scheme shall deploy the funds received in new fund offer within the time period as may be specified by the Board from time to time.”
•In Chapter VII, in regulation 52, (i) after sub-regulation (4), the following sub-regulation shall be inserted, namely, — “(4A) The asset management company shall pay charges or commission or fees related to distribution of mutual fund schemes, and in the manner as may be specified by the Board from time to time.” (ii) in sub-regulation (5), the words and symbols “(2) and (4)” shall be substituted by the words and symbols “(2), (4) and (4A)”
They shall come into force with effect from April 1, 2025.
[Notification No. SEBI/LAD-NRO/GN/2025/230]
