SEBI Timelines related to processing of scheme related applications filed by AMCs

Last updated: 24 July 2021

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The Securities and Exchange Board of India (SEBI) has introduced new timelines to streamline the processing of scheme-related applications submitted by Asset Management Companies (AMCs). Effective September 1, 2021, SEBI will consider applications for changes to fundamental attributes, scheme mergers, rollovers, and conversions as approved if no queries or modifications are raised within 21 working days. This aims to improve the ease of doing business for AMCs.

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.

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

FAQ :

The circular aims to promote ease of doing business and introduce uniform timelines for processing scheme-related applications filed by AMCs.

The timeline applies to applications for changes in fundamental attributes of a scheme, merger/consolidation of schemes, rollover of close-ended schemes, and conversion of close-ended to open-ended schemes.

The circular is applicable to all applications received on or after September 01, 2021.

Yes, the timelines may not be adhered to if the application requires a policy decision, involves a unique situation needing wider consultation, or if the application is incomplete or non-compliant.

If SEBI raises modifications or queries within the 21 working days, the application is not deemed to be taken on record or approved.