SEBI has amended the Mutual Fund Rules to remove the applicability of the definition of “associate” to sponsors who invest in various companies on behalf of the beneficiaries of insurance policies.
The Securities and Exchange Board of India (SEBI) said in a notification that the new rules will be effective from September 3.
The regulator’s board had approved the proposal last month.
“The definition of associate shall not apply to sponsors who invest in various companies on behalf of the beneficiaries of insurance policies or such other schemes,” the regulator said.
Under the rules, an associate includes a person who, directly or indirectly, by himself or in combination with relatives, exercises control over an asset management company (AMC) or trustee.
At present there are 43 mutual fund houses, which together manage assets of around Rs 38 lakh crore.
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