**Summary:**
This Securities and Exchange Board of India (SEBI) circular, reference number SEBI/HO/IMD/DOF2/CIR/2022/145 dated October 28, 2022, serves as an addendum to the SEBI Circular No. SEBI/HO/IMD/DOF2/CIR/2022/69 dated May 23, 2022, and subsequent addendum Circular No. SEBI/HO/IMD/DF2/CIR/P/2022/102 dated July 28, 2022, concerning the development of passive funds. Based on stakeholder feedback, clause 2(IV)(a) of the initial circular will now be applicable with effect from May 01, 2023. This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect investor interests, promote the development of the securities market, and regulate said market. Addressees include all recognized stock exchanges, clearing corporations, depositories, custodians, mutual funds, Asset Management Companies (AMCs), trustee companies/Boards of Trustees of Mutual Funds, Registrar and Transfer Agents (RTAs), stockbrokers-cum-market makers, and the Association of Mutual Funds in India (AMFI). For further information, Chhavi M Kapoor, General Manager, can be contacted at 022-26449112 or via email at chhavim@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for securities and commodity market in India.
Stock Exchanges: Recognized entities where stocks are bought and sold.
Clearing Corporations: Entities that facilitate clearing and settlement of securities transactions.
Depositories: Organizations holding securities in electronic form.
Mutual Funds: Investment vehicles that pool money from investors to purchase securities.
Asset Management Companies (AMCs): Companies that manage investment funds for clients.
SEBI Circular No. SEBIHOIMDDOF2PCIR202269: A prior circular issued by SEBI on May 23, 2022, regarding the development of passive funds.
Securities and Exchange Board of India Act 1992: The act of parliament that established the Securities and Exchange Board of India and gave it statutory regulatory powers.
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Securities and Exchange Board of India
CIRCULAR
SEBI/HO/IMD/DOF2/P/CIR/2022/145 October 28, 2022
To
All Recognized Stock Exchanges/
All Clearing Corporations/
All Depositories/
All Custodians/
All Mutual Funds/
All Asset Management Companies (AMCs)/
All Trustee Companies/ Boards of Trustees of Mutual Funds/
All Registrar and Transfer Agents (RTAs)/
Stock Brokers cum Market Makers/
Association of Mutual Funds in India (AMFI)
Dear Sir/ Madam,
Subject: Addendum to SEBI Circular on Development of Passive Funds
1. This has reference to SEBI Circular No. SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated
May 23, 2022 (hereafter referred as “circular”) and subsequent addendum Circular
No. SEBI/HO/IMD/DF2/CIR/P/2022/102 dated July 28, 2022 on development of
passive funds.
2. In this context, based on further feedback received from stakeholders, it has been
decided that the clause 2(IV)(A) of the circular shall be applicable with effect from
May 01, 2023.
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Securities and Exchange Board of India
3. 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 the provision of
Regulation 77 of SEBI (Mutual Funds) Regulation, 1996 to protect the
interests of investors in securities and to promote the development of, and to
regulate the securities market.
Yours faithfully,
Chhavi M Kapoor
General Manager
Tel no.: 022-26449112
Email: chhavim@sebi.gov.in
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