Setting up of Limited Purpose Clearing Corporation (LPCC) by Asset Management Companies (AMCs) of Mutual Funds
Summary
SEBI modifies the basis for calculating Asset Management Companies' contributions to the Limited Purpose Clearing Corporation share capital. The contribution calculation period is changed from Financial Year 2019-20 to Financial Year 2020-21 based on Average AUM of debt-oriented schemes. All other terms and conditions from the original February 2, 2021 circular remain unchanged.
Text
SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2021/17 dated February 2, 2021 prescribed the modalities for contribution of AMCs towards share capital of LPCC... contribution from AMCs shall be in proportion to the Average AUM of open ended debt oriented mutual fund schemes... managed by them for the Financial Year (FY) 2019-20.
paragraph 4 of SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2021/17 dated February 2, 2021 has been modified to the effect that the contribution of AMCs shall be based on Average AUM of debt oriented schemes... for the Financial Year (FY) 2020-21.
All other terms and conditions as stated in SEBI circular dated February 2, 2021 shall remain the same.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulations 77 of SEBI (Mutual Funds) Regulations, 1996...
Source: SecMarx — Setting up of Limited Purpose Clearing Corporation (LPCC) by Asset Management Companies (AMCs) of Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.