SEBI: SEBI to strengthen MF norms; Schemes to be terminated only after majority unitholders consent – Times of India

Mumbai: In a move aimed at protecting the interests of mutual fund investors, Self On Tuesday, it was decided to make it mandatory to obtain the consent of the trustees of mutual funds. unit holders That’s when the majority of trustees decide to discontinue a plan. As part of the amendment to mutual fund rules, the watchdog will make it mandatory for funds to comply with the Indian Accounting Standards (Ind AS) from the financial year 2023-24.
mutual fund trustee In a release, SEBI said, when majority of the trustees decide to wind up a scheme or redeem the units of the scheme prematurely, the consent of the unitholders would be required to be obtained.
“The trustees shall obtain the consent of the unitholders by a simple majority of the unitholders present and voting on a one vote per unit basis and shall publish the results of the voting within 45 days of the publication of the notice of circumstances for the winding up,” it said. .
In case the trustees fail to obtain consent, SEBI said the scheme should be open for business activities from the second business day after the publication of the voting results.
The decision to amend the rules was taken in the board meeting of SEBI on Tuesday.
In addition to the Ind AS requirements, SEBI has decided to amend the norms with respect to regulatory provisions relating to accounting to remove unnecessary provisions and bring in more clarity.
Meanwhile, to enhance the role of key Registering Agencies (KRAs), the regulator has decided to make them responsible for independent verification of KYC records uploaded on its system by Registered Intermediaries (RIs).
Further, such agencies will have to maintain an audit trail of uploads/modifications/downloads in respect of KYC records of customers.
“It has also been prescribed that the systems of RIs and KRAs should be integrated so that there is seamless movement of KYC documents from RI to KRA,” the release said.