**Summary:**
This Securities and Exchange Board of India (SEBI) circular, reference number SEBI/HO/IMD/I/DOF3/P/CIR/2021/603, dated July 23, 2021, addresses timelines for processing scheme-related applications filed by Asset Management Companies (AMCs). Effective for applications received on or after September 1, 2021, the circular aims to promote ease of doing business and uniformity in processing times.
Specifically, applications concerning changes in fundamental scheme attributes, mergers/consolidation of schemes, rollover of closed-ended schemes, and conversion of closed-ended to open-ended schemes will be deemed to be taken on record if SEBI raises no modifications or queries within 21 working days. A similar 21-working-day timeline applies to applications filed by AMCs under Regulation 24(b) of the SEBI Mutual Funds Regulations, 1996, for which "no objection" will be deemed communicated absent any modifications or queries from SEBI within the stipulated timeframe.
These timelines are contingent upon the application being complete, compliant with all relevant regulations and circulars, and not requiring a policy view or wider consultation due to unique circumstances.
The 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 market development, and regulate the securities market.
For further information, Bithin Mahanta, General Manager, can be contacted at 022-26449634 or bithin[at]sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for securities markets in India; issuer of the circular.
Mutual Funds: Investment vehicles addressed by the circular regarding application processing.
Asset Management Companies (AMCs): Entities that manage mutual funds; subject of the circular's directives.
Association of Mutual Funds in India (AMFI): Industry association for mutual funds in India.
SEBI Mutual Funds Regulations, 1996: Regulations governing mutual funds in India, referenced in the circular.
Securities and Exchange Board of India Act, 1992: Law under which SEBI derives its powers; cited as the basis for the circular.
Regulation 24 b of SEBI Mutual Funds Regulations, 1996: Specific regulation related to applications filed by AMCs.
September 01, 2021: Effective date of the circular.
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Securities and Exchange Board of India
CIRCULAR
SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/603 July 23, 2021
All Mutual Funds/
Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)
Sir/ Madam,
Subject: Timelines related to processing of scheme related applications
filed by AMCs
In order to promote ease of doing business and bring uniformity in the timelines for
processing of scheme related applications filed by AMCs, the following has been
decided:
1. The application filed by AMCs for the following matters may be deemed to be
taken on record in case no modifications are suggested or no queries are
raised by SEBI within 21 working days:
Change in the Fundamental Attributes of a scheme
Merger/Consolidation of Schemes
Rollover of Close-ended schemes
Conversion of Close-ended scheme to Open ended scheme
2. In respect of applications filed by AMCs under Regulation 24 (b) of SEBI
(Mutual Funds) Regulations, 1996, no objection will have been deemed to be
communicated in case no modifications are suggested or no queries are
raised by SEBI within 21 working days.
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Securities and Exchange Board of India
3. The timelines mentioned at para 1 and 2 above shall generally be adhered to
(a) provided the application is complete in all respects and in compliance
with all the relevant Regulations and circulars issued by SEBI.
(b) except in cases where subject matter of approval requires a policy view
to be taken or presents a unique situation which requires wider
consultation and deliberation.
4. The circular shall be applicable for all the applications received on or after
September 01, 2021.
5. 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
77 of the Securities and Exchange Board of India (Mutual Funds) Regulations,
1996 to protect the interests of investors in securities and to promote the
development of, and to regulate the securities market.
Yours faithfully,
Bithin Mahanta
General Manager
Tel no.: 022-26449634
Email: bithinm@sebi.gov.in
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