December 28, 2021
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Majority unitholders’ consent must for winding up of a MF schemes : Sebi
To further safeguard the interest of mutual fund investors, Sebi made it compulsory for trustees of mutual funds to obtain the consent of unitholders when the majority of trustees decide to wind up a scheme.
Mutual fund trustees will be required to obtain the consent of the unitholders when the majority of the trustees decide to wind up a scheme or prematurely redeem the units of a close-ended scheme, Sebi said in a release.
“The trustees will have to obtain consent within 45 days of the publication of notice of circumstances leading to winding up.
The SEBI will make it mandatory for the funds to follow Indian Accounting Standards (Ind AS) from financial year 2023-24 onwards.
The decision to amend the regulations was taken at the Sebi board meeting on Tuesday.
Apart from the Ind AS requirements, Sebi has decided to amend the norms with respect to accounting-related regulatory provisions to remove redundant provisions and to bring more clarity.
Meanwhile, to enhance the role of KYC Registration Agencies (KRAs), the regulator has decided to make them responsible to carry out independent validation of the KYC records uploaded onto their system by the Registered Intermediary (RI).
Besides, such agencies will have to maintain an audit trail of the upload/modification/download with respect to KYC records of clients.
“It has also been prescribed that the systems of the RIs and KRAs should be integrated to facilitate seamless movement of KYC documents to and from RIs to KRAs,” the release said.