On June 12, 2020 the Securities and Exchange Board of India (“SEBI”) issued a circular no. SEBI/HO/IMD/DF4/CIR/P/2020/100 in relation to investment by the sponsor or asset management company in a scheme (“Circular”). The Circular refers to regulation 28(4) of the SEBI (Mutual Funds) Regulations, 1996 that was introduced by the SEBI (Mutual Funds) (Amendment) Regulations, 2020 and that required the sponsor or asset management company to invest not less than 1% (one percent) of the amount which would be raised in the new fund offer or Rs. 50,00,000 (Rupees fifty lac), whichever is less, in such option of the scheme as may be specified by SEBI.
In light of the above, the Circular states that the aforementioned investments shall be required to be made:
Read circular here.
This update has been contributed by Adity Chaudhury (Partner) and Deeya Ray (Associate).
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