What are the restrictions imposed on business activities for collective investment management companies?
CS Executive · Capital Markets & Securities Laws · PYQS · December 2016
What are the restrictions imposed on business activities for collective investment management companies?
Answer & Explanation:
According to Regulation 13 of the SEBI (Collective Investment Schemes) Regulations, 1999, Collective Investment Management Company (CIMC) shall not: undertake any activity other than that of managing the scheme; act as a trustee of any scheme; launch any scheme for the purpose of investing in securities; invest in any schemes floated by it. However, it has been provided that a CIMC may invest in its own scheme, if it makes a disclosure of its intention to invest in the offer document of the scheme, and does not charge any fees on its investment in that scheme.
Topics: Collective Investment Schemes
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