The Securities and Exchange Board of India Vide its notification dated 6th March 2020 has notified new amendments in Mutual Funds regulations.
The amendment has been brought under regulation 26 regarding the appointment of a custodian. Before the amendment gold or gold related instruments shall be be kept in custody of a bank. The new regulation eases this by notifying that these assets can be kept in the custody of a custodian registered with the Board.
Further under regulation 28 (4) the sponsor or asset management company shall invest not less than 1% of the amount which would be raised in the new fund offer or fifty lakh rupees, whichever is less and such investment shall not be redeemed unless the scheme is wound up.
Provided that the investment by the sponsor or asset management company shall be made in such option of the scheme, as may be specified by the Board.
Click here to read the notification.
