regulatory framewrk

8/3/2019 Regulatory Framewrk

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Presented By :-

Amit DaveAniket Jha

Apoorva vyas

Arvind Sharma

Azharuddin Quazi

Presented To :-

Mr. Anil Kothari


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As per SEBI Mutual fund is a mechanism for pooling theresources by issuing units to the investors and investing

funds in securities in accordance with objectives

as disclosed in offer document.

The structure of mutual funds in India is governed by SEBI

(Mutual Fund)Regulations, 1996

It is mandatory to have a three tier structure of

SponsorTrustee - Asset Management Company


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*Securities and exchange board of India (mutual fund)regulations,1996.

*Definitions


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*Application for registration

*Application fee to accompany the application

*Application to conform to the requirements

*Furnishing information*Eligibility criteria

*Consideration of application

*Grant of Certificate of Registration

*Terms and Condition

*Rejection of application

*Payment of annual service fee

*Failure to pay service fee


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*Trust deed to be registered under the Registration Act

*Contents of trust deed

*Disqualification from being appointed as trustees*Approval of the Board for appointment of trustee

*Rights and obligations of the trustees


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*Application by an asset management company

*Appointment of an asset management company

*Eligibility criteria for appointment of Asset Management

Company

*Terms and conditions to be complied with

*Procedure where approval is not granted

*Restrictions on business activities of the asset management

company

*Asset Management Company and its obligations

*Appointment of Custodian

*Agreement with Custodian


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*Procedure for launching of schemes

*Disclosures in the offer document [2A. Nomination]

*Advertisement material

*Misleading statements

*Listing of close ended schemes

*Repurchase of close ended schemes

*Offering Period


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*Allotment of Units and refunds of money

*Unit certificates or Statement of Accounts

*Transfer of units

*Guaranteed returns

*Winding up

*Effect of winding up

*Procedure and Manner of winding up

*Winding up of the scheme


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*Investment objective

*Investment, borrowing, restriction, etc.

*Option Trading, etc.

*Underwriting of Securities

*Method of valuation of investments

*Computation of Net Asset Value

*Pricing of Units


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*To maintain proper books of accounts and records, etc.

*Financial year

*Dispatch of warrants and proceeds

*Annual Report

*Auditor's Report

*Mailing of Annual Report and summary thereof

*Annual Report to be forwarded to the Board

*Periodic and continual disclosures

*Half Yearly disclosures

*Disclosures to the investors


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*Board 's right to inspect and investigation

*Notice before inspection and investigation

*Obligation on inspection and investigation

*Submission of report to the Board

*Communication of findings

*Action on inspection or investigation report

*Appointment of Auditor*Payment of inspection fees to the Board


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*Liability for action in case of default

*Action against intermediaries

*Adjudication

*Suspention of certificate

*Cancellation of certificate


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Investors in mutual funds to comply with KNOW YOURCLIENT (KYC)

Under Prevention Of Money Laundering Act 2002 KYCformalities required to be completed for all investors

Mutual funds have made special arrangements with CDSLVentures Ltd. (CVL) to carry out the process of KYC.

Relevant documents & information to be submitted onlyonce.

Investors can invest in all mutual funds by attaching copyof KYC acknowledgement slip with application form.


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DOCUMENTS & INFORMATION TO BEPROVIDED BY INVESTORS

Investors in mutual fund schemes have to provide :-1.Proof of identity2.Proof of address3.PAN card

4.Photograph

Originals of documents along with copy to bepresented or attested copy of documents can be

presented. Attestation to be done by Notary Public/ Gazetted

Officer/ Manager of Scheduled commercial bank.


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WHERE TO COMPLETE THE FORMALITIES:-

Investor can complete the formalities by submitting

KYC form & relevant documents at Point Of Services(POS).

POS will be select branches / offices of mutualfunds, registrars & branches of some distributos.

Application form is available in above mentioned

offices or can be downloaded from websites of allmutual funds & CVL www.cvlindia.com

Any subsequent changes in any details to be

intimated to any of POS.
http://www.cvlindia.com/http://www.cvlindia.com/


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ARMFA- AMFI Registered Mutual Fund Advisor

ARN- AMFI Registration Number

*Registration of intermediaries who have passed

certification test is done as ARMFA.

ARN is unique no. allotted to :-

Individual agents, brokers, and otherintermediaries engaged in selling Mutual Funds,

having passed the AMFI/NISM Certification Test

Corporates engaged in the business of sellingMutual Funds which apply to AMFI


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Corporates would be issued Certificate ofRegistration indicating validity period of ARN.

No distributor shall hold more than one ARN card/Certificate of Registration

PROCEDURE FOR OBTAINING REGISTRATION

For registering with AMFI, intermediaries arerequired to apply in the prescribed form. The formcan be obtained from the office of AMFI or any officeof CAMS. Alternatively the form can also bedownloaded from AMFI's websitewww.amfiindia.com& needs to be submitted alongwith KYD.
http://www.amfiindia.com/http://www.amfiindia.com/


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Know Your Distributor (KYD) process was started in September

2010.KYD Process flow

*1) Distributors have to visit nearest CAMS POS with duely

completed KYD applications, self attested photocopies of

relevant documents and self attested passport size colorphotograph.

*2) Also carry original documents and get the photocopies

verified with original by CAMS official.

*3) Obtain the acknowledgement from the CAMS POS confirmingcompletion of KYD process.

*4) The existing ARN holders will have to send photocopy of the

said acknowledgement to the AMCs with which they are

working.


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*Regulation 24, along with its marginal note, shall be

substituted with the following, namely

*restrictions on business activities of the asset

management company*Regulation 25, after sub-regulation (16), the following sub-

regulations shall be inserted, namely

*Regulation 36, after sub-regulation (3), the following new

sub-regulation shall be inserted, namely*Regulation 43, in sub-regulation

*Regulation 44, sub-regulation (3) shall be substituted withthe following, namely


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*49Q. Valuation of assets and declaration of net asset

value

*49R. Duties of asset management company

*49S. Disclosures in offer document and other disclosures

*49T. Transactions by employees etc

*regulation 56


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