DIVISION CHIEF

MUTUA. FUNDS DEPARTMENT

MFD/CIR/1/189/2000

April. 10, 2000

A.. Mutua. Funds registered with SEBI/

Unit Trust of India

Dear Sir,

Re. : SEBI (Mutua. Funds) Regu.ations – Gazette Notification dated March 14, 2000 and Money Market Mutua. Fund Schemes

P.ease find enc.osed a copy of the Amendments to SEBI (Mutua. Funds) Regu.ations, 1996 pub.ished in The Gazette of India dated March 14, 2000 for your information and imp.ementation.

Further, it is to inform you that the Reserve Bank of India has withdrawn its guide.ines on money market mutua. funds (MMMFs) w.e.f. March 7, 2000. According.y, such money market mutua. fund schemes, .ike any other mutua. fund schemes, wou.d exc.usive.y be governed by the SEBI (Mutua. Funds) Regu.ations,1996.

Yours faithfu..y,

P.K.NAGPA.

Enc. : as above

PUB.ISHED BY AUTHORITY
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
MUMBAI, THE 14th DAY OF MARCH 2000

SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUA. FUNDS)
(AMENDMENT) REGU.ATIONS, 2000

S.O. 23 5(E). In exercise of the powers conferred by sub-section (1) of section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) the Board hereby makes the fo..owing Regu.ations further to amend the Securities and Exchange Board of India (Mutua. Funds) Regu.ations, 1996, name.y:

I.(1) These Regu.ations may be ca..ed the Securities and Exchange Board of India (Mutua. Funds) (Amendment) Regu.ations, 2000.

(2) They sha.. come into force on the date of their pub.ication in the Officia. Gazette.

II. In the Securities and Exchange Board of India (Mutua. Funds) Regu.ations, 1996,

(1) In Regu.ation 53, after sub-c.ause (b), new sub-c.auses (c) and (d) sha.. be added as under:

“(c) In the event of fai.ure to despatch the redemption or repurchase proceeds within the period specified in sub-c.ause (b), the asset management company sha.. be .iab.e to pay interest to the unitho.ders at such rate as may be specified by Board for the period of such de.ay.

(d) Notwithstanding payment of such interest to the unitho.ders under sub-c.ause (c), the asset management company may be .iab.e for pena.ty for fai.ure to despatch the redemption or repurchase proceeds within the stipu.ated time.”

(2) After Regu.ation 59, a new Regu.ation 59A sha.. be inserted as under:

“59A. A mutua. fund sha.. before the expiry of one month from the c.ose of each ha.f year (i.e.

31st March and 30th September), send to a.. unitho.ders a comp.ete statement of its scheme portfo.io.

Provided that statement of scheme portfo.io may not be sent to the unitho.ders, if the statement is pub.ished, by way of an advertisement, in one Eng.ish dai.y circu.ating in the who.e of India and in a newspaper pub.ished in the .anguage of the region where the head office of the mutua. fund is situated.”

(3) In the Seventh Schedu.e,

a. in proviso to c.ause (10), for the word ‘in’, the words ‘in case of’ sha.. be substituted.

b. in c.ause (11), –

i. the word ‘un.isted’ sha.. be inserted after the words ‘for the’ and before the words ‘equity shares’.

ii. for the word ‘investments’ appearing after the words ‘equity re.ated’, the word ‘instruments’ sha.. be substituted.

(4) In the E.eventh Schedu.e, in c.ause 3, in item (vii), the sub-item (c) sha.. be omitted.

F.No. SEBI/.E/4331/2000

D.R. MEHTA

CHAIRMAN

Foot Note:

. The principa. regu.ation, SEBI (Mutua. Funds) Regu.ations, 1996, was issued under S.O. No. 856(E), dated December 6, 1996 pub.ished in the Gazette of India, Part II, Section 3 (ii), dated December 9, 1996.

. SEBI (Mutua. Funds) Regu.ations, 1996 was subsequent.y amended by the SEBI (Mutua. Funds) (Amendment) Regu.ations, 1997, issued under S.O. NO. 327 (E), pub.ished in Gazette of India dated Apri. 15, 1997.

. SEBI (Mutua. Funds) Regu.ations, 1996 was subsequent.y amended by the SEBI (Mutua. Funds) (Amendment) Regu.ations, 1998, issued under S.O. No. 32(E), pub.ished in the Gazette of India dated January 12, 1998.

. Corrigendum to SEBI (Mutua. Funds) Regu.ations, 1996 was issued under S.O. No.105 (E) pub.ished in the Gazette of India dated February 6, 1998.

. SEBI (Mutua. Funds) Regu.ations, 1996 was subsequent.y amended by the SEBI (Mutua. Funds) (Amendment) Regu.ations, 1999 issued under S.O. No. 1223(E), pub.ished in the Gazette of India dated December 8, 1999.

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