11. Amendment of Act 15 of 1992. — In the Securities and Exchange Board of India Act, 1992, — (i) in section 2, in sub-section (1), after clause (b), the following clause shall be inserted, namely :—
(ba) "collective investment scheme" means any scheme or arrangement which satisfies the conditions specified in section 11AA;’;
(ii) after section 11A, the following section shall be inserted, namely :—
"11AA. Collective investment scheme. —
(1) Any scheme or arrangement which satisfies the conditions referred to in sub-section (2) shall be a collective investment scheme.
(2) Any scheme or arrangement made or offered by any company under which, —
(i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilised for the purposes of the scheme or arrangement;
(ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement;
(iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors;
(iv) the investors of not have day-to-day control over the management and operation of the scheme or arrangement.
(3) Notwithstanding anything contrined in subsection (2), any scheme or arrangement —
(i) made or offered by a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State;
(ii) under which deposits are accepted by anon-banking financial companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);
(iii) being a contract of insurance to which the Insurance Act, 1938, applies;
(iv) providing for any scheme, pension scheme or the insurance scheme framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (1 of 1952);
(v) under which deposits are accepted under section 58 A of the Companies Act, 1956 (1 of 1956);
(vi) under which deposits are accepted by a company declared as a Nidhi or a Mutual Benefit Society under section 620A of the Companies Act, 1956 (1 of 1956);
(vii) falling within the meaning of chit business as defined in clause (e) of section 2 of the Chit Funds Act, 1982 (40 of 1982);
(viii) under which contributions made are in the nature of subscription to a mutual fund; shall not be a collective investment scheme.".
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