Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2009

No. LAD-NRO/GN/2009-10/01/159601. - In exercise of the powers conferred by section 30 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) (Amendment) Regulations, 2009.

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–
(i) in regulation 18, in sub-regulation (4) -
(a) in clause (g), the mark “.” occurring at the end shall be substituted with
mark “;”;
(b) after clause (g), the following clause shall be inserted, namely:-
“(h) obtained, wherever required under these regulations, prior inprinciple
approval from the recognised stock exchange(s) where units
are proposed to be listed.”
(ii) in regulation 25, after sub-regulation (2), the following sub-regulation
shall be inserted, namely:-
“(2A) The asset management company shall obtain, wherever required
under these regulations, prior in-principle approval from the recognised
stock exchange(s) where units are proposed to be listed.”
(iii)in regulation 29, after sub-regulation (4), the following sub-regulation
shall be inserted, namely:-
“(5) The offer document shall contain the disclosure regarding the prior inprinciple
approval obtained from the recognized stock exchange(s), where
units are proposed to be listed in accordance with these regulations.”
(iv)for regulation 32, the following regulation shall be substituted, namely:-

“32. Listing of close ended schemes.Every close ended scheme, other than an equity linked savings scheme,
shall be listed on a recognised stock exchange within such time period and
subject to such conditions as specified by the Board:

Provided that listing of close ended scheme launched prior to the
commencement of the Securities and Exchange Board of India (Mutual
Funds) (Amendment) Regulations, 2009 shall not be mandatory —
(a) if the said scheme provides for periodic repurchase facility to all the
unitholders with restriction, if any, on the extent of such repurchase;
or
(b) if the said scheme provides for monthly income or caters to special
classes of persons like senior citizens, women, children, widows or
physically handicapped or any special class of persons providing for
repurchase of units at regular intervals; or
(c) if the details of such repurchase facility are clearly disclosed in the
offer document; or
(d) if the said scheme opens for repurchase within a period of six months
from the closure of subscription; or
(e) if the said scheme is a capital protection oriented scheme.”
(v) in regulation 33,-
(a) for sub-regulation (1), the following sub-regulation shall be
substituted, namely:-
“(1) Units of a close ended scheme, other than those of an equity
linked savings scheme, launched on or after the commencement of
the Securities and Exchange Board of India (Mutual Funds)
(Amendment) Regulations, 2009 shall not be repurchased before
the end of maturity period of such scheme.”
(b) sub-regulation (2A) shall be omitted.
(vi)for regulation 36, the following regulation shall be substituted, namely:-

“36. Statement of accounts or unit certificates. (1) The asset management company shall issue to the applicant whose
application has been accepted, a statement of accounts specifying the
number of units allotted to the applicant as soon as possible but not later
than thirty days from the date of closure of the initial subscription list
and/or from the date of receipt of the request from the unitholders in any
open ended scheme:
Provided that if an applicant so desires, the asset management company
shall issue the unit certificates to the applicant within thirty days of the
receipt of request for the certificate.
(2) An applicant in a close ended scheme whose application has been
accepted shall have the option either to receive the statement of accounts
or to hold units in dematerialised form and the asset management company
shall issue to such applicant, a statement of accounts specifying the
number of units allotted to the applicant or issue units in dematerialised
form as soon as possible but not later than thirty days from the date of
closure of the initial subscription list.
(3) The asset management company shall issue units in dematerialised
form to a unitholder in a close ended scheme listed on a recognised stock
exchange within two working days of the receipt of request from the
unitholder.”

(vii) in regulation 37, -
(a) in sub-regulation (1), the words “An unit certificate” shall be
substituted with the words “A unit”.
(b) after sub-regulation (1), the following sub-regulation shall be
inserted, namely:-
“(1A) A unitholder, in a close ended scheme listed on a recognised
stock exchange, who desires to trade in units shall hold units in
dematerialised form.”
(viii) after regulation 42, the following regulation shall be inserted, namely:-

“42A. Delisting of units.
The units of a mutual fund scheme shall be delisted from a
recognised stock exchange in accordance with the guidelines as may be
specified by the Board.”
(ix)in regulation 48, in sub-regulation (2), for the existing proviso, the
following proviso shall be substituted, namely:-
“Provided that the Net Asset Value of a close ended scheme, other than
that of equity linked savings scheme, shall be calculated on daily basis and
published in at least two daily newspapers having circulation all over
India.”
(x) in regulation 49,-
(a) in sub-regulation (3), for the existing first proviso, the following
proviso shall be substituted, namely:-
“Provided that the repurchase price of the units of close ended
scheme launched prior to the commencement of the Securities and
Exchange Board of India (Mutual Funds) (Amendment) Regulations,
2009 shall not be lower than ninety five per cent. of the Net Asset
Value:”
(b) in sub-regulation (3A), after the words “close ended scheme” and
before the words “which fulfils the conditions mentioned in subregulation
(3B)”, the words “launched prior to the commencement of
the Securities and Exchange Board of India (Mutual Funds)
(Amendment) Regulations, 2009” shall be inserted.
(xi)in regulation 49G, after sub-regulation (12), the following sub-regulation
shall be inserted, namely:-
“(13) The asset management company shall obtain, wherever required
under these regulations, prior in-principle approval from the recognised
stock exchange(s) where units are proposed to be listed.”
(xii) in regulation 49I, after sub-regulation (10), the following subregulation
shall be inserted, namely:-
“(11) The trustees shall obtain, wherever required under these regulations,
prior in-principle approval from the recognised stock exchange(s) where
units are proposed to be listed.”
(xiii) in regulation 52, in sub-regulation (4), in clause (b) –

(a) for sub-clause (xii-b), inserted by the Securities and Exchange Board
of India (Mutual Funds) (Amendment) Regulations, 2008 vide F.
No. LAD-NRO/GN/2008/03/123042, the following renumbered subclause
shall be substituted, namely:-
“(xii-c) in case of a real estate mutual fund scheme, insurance
premia and costs of maintenance of the real estate assets (excluding
costs of development of such assets) over and above the expenses
specified in regulation 52 to the extent disclosed in the offer
document;”
(b) after the substituted sub-clause (xii-c), the following sub-clause shall
be inserted, namely:-
“(xii-d) listing fees, in case of schemes listed on a recognised stock
exchange; and”
(xiv) in the Ninth Schedule, in Part A, in clause j, after the words “In a
close-ended scheme” and before the words “which provide to the unit
holders the option for an early redemption”, the words “launched prior to
the commencement of the Securities and Exchange Board of India (Mutual
Funds) (Amendment) Regulations, 2009” shall be inserted.
(xv) in the Eleventh Schedule, in item 2, in clause (a), in sub-clause (xi),
after the words “In a close ended scheme” and before the words “which
provides to the unit holders the option for an early redemption”, the words
“launched prior to the commencement of the Securities and Exchange
Board of India (Mutual Funds) (Amendment) Regulations, 2009” shall be
inserted.