The Security And Exchange Board of India through notification No. SEBI/LAD-NRO/GN/2025/230 notified Securities and Exchange Board of India ( Mutual Funds) ( mendment ) Regulations, 2025. It was mentioned that the amendment act shall come into force with effect from April 1, 2025.
In exercise of the powers conferred by section 30 read with clause (c) of sub-section (2) of section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India ( Mutual Funds ) Regulations, 1996.
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Additionally, the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, were amended. The new sub-regulation was added in Chapter IV, under regulation 25 (i), following sub-regulation (16A). By section (16B) The asset management business will invest a portion of the workers’ compensation that the Board specifies in mutual fund schemes according to the duties or designations of the designated employees in a way that the Board may specify.
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Furthermore, (ii) the following new sub-regulation will be added after sub-regulation (29), specifically: “(30) The asset management company shall conduct stress testing for such schemes as specified by the Board and disclose the results of the stress testing in the form and manner, as may be specified by the Board.”
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Sub-regulation (4) will be followed by the next sub-regulation in Chapter V, regulation 35, further in (II), which is “(5) The plan will use the money obtained from the new fund offer within the time frame that the Board may occasionally specify.” (III) Chapter VII, regulation 52, (i) The following sub-regulation, “(4A) The asset management company shall pay charges or commission or fees related to distribution of mutual fund schemes, and in the manner as may be specified by the Board from time to time,” shall be inserted following sub-regulation (4). (ii) The terms and symbols “(2) and (4)” in sub-regulation (5) will be replaced with “(2), (4), and (4A)”.
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