The Securities and Exchange Board of India (Sebi) rewind the regulations for investment funds that impose restrictions on the business activities of Assiva Management Companies (AMC), said executive director Manoj Kumar.
“We do an important assessment of the regulation 24. This is the only restrictive clause under the regulation of the investment fund,” Mr. Kumar said here on Tuesday at the CII Mutual Fund Summit.
Clause 24 of the regulation of investment funds is about the issues with regard to business activities that AMCs can accept. The Regulation requires AMCs not to perform business activities that are in conflicts of interest with the core activity of managing investment funds.
It is obliged to approve SEBI to give advice or to give advice to foreign funds. It also ensures that the bank and securities accounts are maintained separately and there are individual fund managers for different funds.
Investment fund companies say that this makes it difficult for them to expand to different companies and a relaxation would help them get in more lucrative ways.
“We are also trying to revise the entire regulation, because we have been noted that the regulation of investment funds is the longest regulation, so that calls for an extensive assessment,” Mr Kumar added.
The approach to regulations in Sebi has changed after the new chef Tuhin Kanta Pandey took office. “We are going from important regulatory areas (scratch)- based system, which has certainly delivered, to a favorable regulatory approach, where we will try to create an environment in which we work together with industry,” said Mr. Kumar. The statement presupposes the meaning because Mr Pandey had underlined the approach of Sebi under his leadership as optimum regulations instead of maximum regulations.
Published – April 15, 2025 09:35 pm is
