The Securities and Exchange Board of India vide its notification dated 25th January 2022 has published the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2022 to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
Key Highlights from the amendment:
- Through this amendment, regulation 18 which deals with rights and obligations of the trustees in which sub-regulation 15 (c) has been substituted as follows:
The trustees shall obtain the consent of the unitholders, when the majority of the trustees decide to wind up a scheme in terms of clause (a) of sub regulation (2) of regulation 39 or prematurely redeem the units of a close ended scheme.”
2. Further under regulation 39 (3) Where a scheme is to be wound up, the trustees shall give notice within one day, disclosing the circumstances leading to the winding up of the scheme-
a) to the Board; and
b) in two daily newspapers having circulation all over India, a vernacular newspaper circulating at the place where the mutual fund is formed:
Provided that where a scheme is to be wound up under clause (a) of sub-regulation (2), the trustees shall obtain consent of the unit holders participating in the voting by simple majority on the basis of one vote per unit and publish the results of voting within forty five days from the publication of notice under sub-regulation (3):
Provided further that in case the trustees fail to obtain the required consent of the unitholders under clause (a) of sub-regulation (2), the schemes shall be reopened for business activities from the second business day after publication of results of the voting.
3. As per regulation 50(1A) The financial statements and accounts of the mutual fund schemes shall be prepared in accordance with Indian Accounting Standards (IND AS) and any addendum thereto, as notified by the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time:
Provided that in case there is any conflict between the requirements of IND AS and these regulations and guidelines issued thereunder, the asset management companies shall follow the requirements specified under these regulations.
