Ease of doing business- Fund manager for Mutual fund schemes investing in commodities and overseas securities.
Summary
SEBI has modified the Master Circular for Mutual Funds to make the appointment of a dedicated fund manager optional for commodity-based and overseas investment funds. This change aims to ease compliance and promote ease of doing business while ensuring that appointed managers possess adequate expertise. The Board of Asset Management Companies remains responsible for ensuring compliance and reporting these appointments to trustees periodically.
Text
For commodity based funds such as Gold ETFs, Silver ETFs and other funds participating in commodities market, appointment of a dedicated fund manager shall be optional. However, the person appointed as fund manager of such funds should have adequate expertise and experience to manage investments in commodities market. The Board of the AMCs shall be responsible for ensuring compliance and reporting regarding the same to trustees, on a periodic basis.
Appointment of a dedicated fund manager for making the above overseas investments stipulated under paragraph 12.19.2.1 to 12.19.2.9 shall be optional. However, the person appointed as fund manager of such funds should have adequate expertise and experience to manage investments in overseas securities. The Board of the AMCs shall be responsible for ensuring compliance and reporting regarding the same to trustees, on a periodic basis.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 25(22)(a)(ii) and Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Ease of doing business- Fund manager for Mutual fund schemes investing in commodities and overseas securities.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.