SEBI (Mutual Funds) (Second Amendment) Regulations 2018 - Notified

Securities and Exchange Board of India (SEBI) Notification dated the 29th May, 2018 (published in the Gazette of India on 30th May, 2018), reads as follows:-

No. SEBI/LAD-NRO/GN/2018/14.—In exercise of the powers conferred by section 30 read with clause (c) of sub-section (2) of section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, namely –

1. These Regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2018.

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 (Mutual Funds) Regulations, 1996, -

   a. in regulation 48, in sub-regulation (2), the words “published in at least two daily newspapers having circulation all over India” shall be substituted with the words “disclosed in the manner specified by the Board”.

   b. in regulation 49, —

i. in sub-regulation (1), the words “in the manner specified by the Board” shall be inserted after the word “investors” and before the symbol “.”.

ii. the existing sub-regulation (2) shall be substituted with the following, namely, —
 “The mutual fund shall provide the methodology of calculating the sale and repurchase price of units in the manner specified by the Board.”

   c. in regulation 52, in sub-regulation (6A), in clause (c), —

i. the figure “0.20” shall be substituted with the figure “0.05”;

ii. after the words “net assets of the scheme”, the words and symbol “or as specified by the Board:” shall be inserted;

iii. the following new proviso shall be inserted, namely,—

 “Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable.”

   d. in regulation 56,—

i. the existing title shall be substituted with the following, namely, -
  “Providing copies of Annual Report and summary thereof”

ii. in sub-regulation (1),—
 1. the word “mailed” shall be substituted with the word “provided”.
 2. after the words “relevant accounts year”, the words “in the manner specified by the Board” shall be inserted.
 3. the proviso shall be omitted.

iii. in sub-regulation (2), in the proviso thereto, the word “mailed” shall be substituted with the word “provided”.

iv. after sub-regulation (2), the following new sub-regulation shall be inserted as regulation (3), namely –
 “(3) Notwithstanding anything contained in sub-regulation (1), the mutual fund shall provide physical copy of the abridged summary of the Annual Report without any cost, if a request through any mode is received from a unitholder.”

v. in the existing sub-regulation (3), which shall now be re-numbered as sub-regulation (3A), the word “mailed” appearing therein shall be substituted with the word “provided”.

e. in regulation 59A, —

i. the words “one month” shall be substituted with the words “ten days”.

ii. after the words and symbol “scheme portfolio”, the symbols and words “, in the manner specified by the Board” shall be inserted.

iii. the existing proviso shall be omitted.

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