SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 23 rd January, 2001

Securities and Exchange Board of India

(Mutual Funds) (Amendment) Regulations, 2001

s.o. 69(E).— In exercise of the powers conferred by sub - section (1) of Section 30

of the Securities and Exchange Board of Ind^a Act, 1992 (15 of 1992), the*

Securities and Exchange Board of India hereby makes the following regulations,

namely: -

I. (1) These regulations may be called the Securities and Exchange Board of India

(Mutual funds) (Amendment) Regulations, 2001.

(2) They shall come Into force on the date of their publication in the official

Gazette.

II.

In the Securities and Exchange Board of India (Mutual funds) Regulations

1996:-

(a) In Eighth Schedule, in clause (1), in sub - clauses (v) and In clause (2)

sub - clause (i) for the word, "sixty", the word, "thirty" shall be

substituted.

(b) After clause (5), the following clauses shall be Inserted, namely: -

" clause (6) Thinly traded securities as defined in the guidelines shall be

valued In the manner as specified in the guidelines issued by the Board

clause (7) The aggregate value of Illiquid securities as defined in the

guidelines shall not exceed 15% of the total assets of the scheme and any

illiquid securities held above 15% of the total assets shall be valued In the

manner as specified in the guidelines issued by Board"

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3lu)l

(2)

In Ninth Schedule, for clause (g), the following shall be substituted, namely:

"(g) Where income receivable on investments has accrued but has not been

received for the period specified in the guidelines Issued by the Board,

provision shall be made by debiting to the revenue account the income so

accrued in the manner specified by guidelines Issued by the Board"

(3) In Eleventh schedule, In clause 3, for sub - clause (HI) the following shall be

substituted namely; -

"(HI) The Balance Sheet shall disclose under each type of Investment(s) the

aggregate carrying value and market value of non-performing investments.

An investment shall be regarded as non - performing If it has provided no

returns In the form of dividend or interest for a period specified In the

guidelines Issued by the Board"

IF. No. SEBI/LE/21863/01]

D. R. MEHTA, Chairman

Foot notes:

1. The principal regulation, SEBI (Mutual Funds) Regulations, 1996 was issued

under S.O. No. 865(E) dated December 6, 1996 published In the Gazette of

India, Part II, Section 3(11), dated December 9, 1996.

2. SEBI (Mutual Funds) Regulations, 1996 was subsequently amended-

(a) on April 15, 1997 by SEBI (Mutual Funds) (Amendment) Regulations,

1997 vide S.O, No. 327 (E).

(b) on January 12, 1998 by SEBI (Mutual Funds) (Amendment) Regulations,

1998 vide S.O. No. 32 (E).

1999 vide S.O. No. 1223 (E).

(d) on March 14, 2000 by SEBI (Mutual Funds) (Amendment) Regulations,

2000 vide S.O. No. 235 (E).

(e) on May 22, 2000 by SEBI (Mutual Funds) (Second Amendment)

Regulations, 2000 vide S.O. No. 484 (E).

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