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Collective Investment Scheme - 2nd Quarter Report

30 October 2020 at 12:00:00 am

Reg. 15(1) of SEBI (Collective Investment Scheme) Regulations, 1999: Collective Investment Management Company shall submit quarterly report to its trustees, on its activities and the position regarding compliances with these regulations, within 1 month from the end of the each quarter.

Collective Investment Management Company prepare report on following activities and it shall:
(a) be responsible for managing the funds or properties of the 26[collective investment scheme]
on behalf of the unit holders;
(b) take all reasonable steps and exercise due diligence to ensure that the 27[collective investment
scheme] is managed in accordance with the provisions of these regulations, offer document and
the trust deed;
(c) exercise due diligence and care in managing assets and funds of the 28[collective investment
(d) be responsible for the acts of commissions and omissions by its employees or the persons
whose services have been availed by it;
(e) remain liable to the unit holders for its acts of commission or omissions, notwithstanding
anything contained in any contract or agreement;
(f) be incompetent to enter into any transaction with or through its associates, or their relatives
relating to the 29[collective investment scheme]:
Provided that in case the Collective Investment Management Company enters into any
transactions relating to the 30[collective investment scheme] with any of its associates, a report to
that effect shall immediately be sent to the trustee and to the Board.
(g) appoint registrar and share transfer agents;
(h) abide by the Code of Conduct as specified in the Third Schedule;
(i) give receipts for all monies received by it and give a report to the Board every month,
particularly of receipts and payments;
(j) hold a meeting of the Board of Directors to consider the affairs of 31[collective investment
scheme] at least twice in every three months;
(k) ensure that its officers or employees do not make improper use of their position or
information to gain, directly or indirectly, an advantage for themselves or for any other person or
to cause detriment to the 32[collective investment scheme];
(l) obtain adequate insurance against the property of the 33[collective investment scheme];
(m) comply with such guidelines, directives, circulars and instructions as may be issued by the
Board from time to time, on the subject of collective investment schemes.


All over India


Chapter V of the SEBI (Intermediaries) Regulations, 2008: Non-Compliance to any rules and regulation by any Collective Investment Management Company, may leads to following prohibations or penalties: (i) suspension of certificate of registration for a specified period; (ii) cancellation of certificate of registration; (iii) prohibiting the noticee to take up any new assignment or contract or launch a new scheme for the period specified in the order; (iv) debarring a principal officer of the noticee from being employed or associated with any registered intermediary or other registered person for the period specified in the order; (v) debarring a branch or an office of the noticee from carrying out activities for the specified period; (vi) warning the noticee.


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