1. Relevant date : 7th August 2020
2. Relevant Circular : SEBI/HO/MRD2/DCAP/CIR/P/2020/149
3. Refer the , SEBI (IFSC) Guidelines, 2015 : https://taxguru.in/sebi/sebi-international-financial-services-centres-guidelines-2015.html
4. Object of the Circular : To streamline the operations at IFSC.
What is new under this Circular?
1. Eligibility criteria and shareholding limit for Clearing Corporation :
1. Any Clearing corporation or
2. any Indian recognized stock exchange or
3. Any clearing corporation of a foreign jurisdiction Shall form a subsidiary which provide the service of clearing corporation in IFSC wherein at least 51% of paid up share capital is held by such stock exchange or clearing corporation.
4. Remaining share capital may be acquired or held by any other person (Indian or of foreign jurisdiction) and such person shall not at any time, directly or indirectly either individually or together with PAC acquire or hold more than 5% of paid up equity shares capital in a recognized clearing corporation in IFSC subject to the applicable laws.
a. Any stock exchange;
b. A Clearing corporation;
c. A depository;
d. A Banking Company;
e. An Insurance Company;
either Indian or from foreign
f. Indian Public Financial Institution
g. A foreign commodity derivative exchange and
h. a bilateral or multilateral financial institution approved by the CG.
May acquired or hold directly or indirectly or together with PA, Upto 15% of the paid up equity share capital of such clearing corporation.
Resources for Trustees of Mutual Funds
1. Relevant Date : 10th August 2020
2. Relevant Circular : SEBI/HO/IMD/DF4/CIR/P/2020/0000000151
4. Internal Audit :
As per the regulations 18 (25) (B) (i) of SEBI (Mutual Funds) Regulations 1996 states that the Trustees shall obtain internal audit reports intervals from independent auditors appoints appointed by the Trustees.
5. Administrative support :
Further, SEBI circular No. MFD/CIR/09/014/2000 Dated 5th January 2000 has dealt with the issue of providing administrative support including appointment of independent auditors for the trustee to effectively discharge various responsibilities as cast upon them in SEBI (Mutual Funds) Regulations 1996.
6. Feedback :
SEBI in its interactions with the trustees had received feedback for provided administrative assistance to trustee in monitoring various activities of AMCs.
7. Appointment of officer :
Trustee shall appoint a dedicated officer having professional qualification and minimum 5 years of experience in finance and financial services related field.
The officer shall be employee of the Trustee and directly report to the trustees.
The scope of work for the said officer shall be specified by Trustees from time to time to support the role and responsibilities of the Trustees. The officer shall accordingly assist the trustee and discharge the actives assigned to him.
8. Arrangements with independent firms :
Trustee shall have arrangements with the independent firms for special purpose audit and/or to seek advice in case of requirement as identified and whenever considered necessary.
9. Liabilities of Trustee :
The trustee shall however continue to be liable for discharge of various fiduciary responsibilities as cast upon them in the SEBI (Mutual Funds) Regulations 1996.
10. Effective date of the Circular : 1st October 2020