SEBI (COLLECTIVE INVESTMENT SCHEMES) (AMENDMENT) REGULATIONS, 2014 – AMENDMENT IN REGULATIONS 2 and 11; INSERTION OF REGULATIONS 4A AND 74A and; SUBSTITUTION OF A SPECIFIED TERM
NOTIFICATION NO.LAD-NRO/GN/2013-14/39/51, DATED 9-1-2014
In exercise of the powers conferred by section 30 read with section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to amend the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999, namely:—
1. These regulations may be called the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2014.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999—
| (i) | the term 'scheme' wherever occurring shall be substituted by the term 'collective investment scheme'. | |
| (ii) | in sub-regulation (1) of regulation 2, clause (y) shall be omitted. | |
| (iii) | after regulation 4, the following regulation shall be inserted, namely,— | |
| "4A. Application by a scheme or arrangement deemed to be a collective investment scheme.—(1) Any person proposing to carry on or sponsor or launch any scheme or arrangement which would be deemed to be a collective investment scheme under the proviso to sub-section (1) of section 11AA of the Act, shall make an application for grant of registration as a Collective Investment Management Company in Form A: | ||
| Provided that any scheme or arrangement which is otherwise regulated or prohibited under any other law shall not be deemed to be a collective investment scheme. | ||
| (2) All other provisions of these regulations and the guidelines and circulars issued thereunder, shall apply to any scheme or arrangement deemed to be a collective investment scheme under the proviso to sub-section (1) of section 11AA of the Act.". | ||
| (iv) | in regulation 11, after clause (f) the following shall be inserted, namely,— |
| "(g) | the Collective Investment Management Company shall enter into an agreement with a depository for dematerialization of the units of collective investment scheme proposed to be issued; | |
| (h) | all monies payable towards subscription of units of collective investment scheme shall be paid through cheque or demand draft or through any other banking channel, but not by cash; | |
| (i) | the Collective Investment Management Company shall comply with KYC (know your client) norms as specified by the Board.". |
| (v) | after Chapter IX, the following Chapter shall be inserted, namely:— |
"CHAPTER IX A
EXISTING SCHEMES OR ARRANGEMENTS DEEMED TO BE A COLLECTIVE INVESTMENT SCHEME
74A. Existing schemes or arrangements deemed to be a collective investment scheme to obtain provisional registration.—(1) Any person who has been operating a scheme or arrangement deemed to be a collective investment scheme under the proviso to sub-section (1) of section 11AA of the Act at the time of commencement of the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2014, shall be deemed to be an existing collective investment scheme and shall also comply with the provisions of Chapter IX:
Provided that any scheme or arrangement which is otherwise regulated or prohibited under any other law shall not be deemed to be a collective investment scheme.
Explanation : The expression 'operating a scheme or arrangement deemed to be a collective investment scheme' shall include carrying out the obligations undertaken in the various documents entered into with the investors who have subscribed to the scheme or arrangement.
(2) An existing collective investment scheme shall make an application to the Board in the manner specified in regulation 5.".
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