Latest rules and regulations of mutual fund policies of 2022

Because the COVID-19 epidemic is still having an impact on the markets and the economy, many investors are likely to be focusing their attention on the upcoming calendar year, which begins on January 1.

Mutual funds Investors should be aware of important SEBI regulations.

In the case of a mutual fund, the AMC structure should include 50 percent independent directors, a separate board of trustees business with 50 percent independent trustees, and independent custodians in order to maintain a degree of separation between fund managers, custodians, and trustees.

Because AMC controls the money and trustees have custody of all the assets, AMC is the financial manager. It is necessary to maintain a delicate balance between them in order for both to be able to keep a check on the other.
When issuing an approval, the SEBI takes into consideration the Sponsor, the financial health of the fund, and the integrity of the business.

Mutual funds are required to adhere to the principles of advertising in order to be successful.
According to the SEBI standards, a minimum corpus of 50 crores and a minimum corpus of 20 crores are required for an open-ended scheme and a closed-ended scheme, respectively.

The money received for these savings plans should be invested by a mutual fund within nine months of its receipt.
As a result, the funds are less likely to be invested in positive markets, and the risk of suffering from a low NAV is reduced.

For short-term liquidity requirements, a mutual fund’s maximum investment in the money market is 25 percent of the fund’s corpus in the first six months after closing the funds and 15 percent of the fund’s corpus after six months.
Every year, the Securities and Exchange Board of India (SEBI) inspects mutual funds to ensure that they are in compliance with applicable legislation and norms.

Is it legal for mutual funds to engage in bitcoin trading?
Cryptocurrency is digital money that is not controlled by a central body and is therefore anonymous. It is a means of exchange that makes and secures transactions with the use of cryptography, as well as managing new units of currency. It is not sanctioned by the law and is not supported by the government.

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