The Securities and Exchange Board of India has notified SEBI (Mutual Funds) (Second Amendment) Regulations, 2021 on August 5, 2021. They shall come into force on the 270th day from 05.08.2021, the date of their publication in the Official Gazette.
The Regulations amend the SEBI (Mutual Funds) Regulations, 1996 in the following manner:
- 25(16A) has been inserted to require the asset management company to evaluate schemes based on the risks associated with the mutual fund schemes, also the risks specified by the Board from time to time, before investing in the schemes.
- 28(4) has been omitted.
- 76 has been substituted, prescribing that in cases of contravention of any provision of the Act or regulations, the Board may initiate action and may pass orders such as:
(a) Suspension of the scheme for a period not exceeding one year;
(b) Forfeiture of the amount invested by an asset management company in any of its schemes.
*Tanvi Singh, Editorial Assistant has reported this brief.