<p>Seeking to put in place a stricter regulatory framework for collective investment schemes, markets watchdog Sebi has decided to enhance the net worth criteria and track record requirements for entities managing such schemes.</p>.<p>The regulator has also approved changes to listing obligations and disclosure requirement regulations for simplification of procedure for transmission of securities.</p>.<p>It also gave the nod to amend regulations to enable Sebi-registered custodians to provide custodial services in respect of silver or silver-related instruments held by silver ETFs of mutual funds.</p>.<p>These decisions were taken at a board meeting of Sebi held on Tuesday.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/psu-disinvestment-sebi-proposes-relaxing-provisions-for-open-offer-price-determination-1094833.html" target="_blank">PSU disinvestment: Sebi proposes relaxing provisions for open offer price determination</a></strong></p>.<p>Amid instances of investors getting defrauded by fraudulent money pooling schemes, the regulator would also restrict a Collective Investment Management Company (CIMC) and its group/associates/shareholders' shareholding in a scheme at 10 per cent or representation on the board of another CIMC to avoid conflict of interest.</p>.<p>Besides, the mandatory investment of CIMC and its designated employees in the Collective Investment Schemes (CIS) have to align their interests with that of the CIS.</p>.<p>Sebi said the net worth criteria would be enhanced and a requirement of having a track record in a relevant field as an eligibility requirement for registration as a CIMC would be put in place.</p>.<p>Among others, there would be a "mandatory requirement of a minimum number of investors, maximum holding of a single investor and minimum subscription amount at CIS level," Sebi said.</p>.<p>The regulator said there would be a rationalisation of fees and expenses to be charged to the scheme as well as a reduction of timelines for the offer period of the scheme, allotment of units and refund of money to investors.</p>.<p>The changes have been proposed to "strengthen the regulatory framework for CIS in line with Mutual Fund regulations to remove regulatory arbitrage," the release said.</p>.<p>To simplify the procedure for transmission of securities, the existing threshold limit for simplified documents would be revised to Rs 5 lakh from Rs 2 lakh currently for securities held in physical mode per listed issuer.</p>.<p>Also, the threshold in this regard for securities held in the dematerialised mode for each beneficiary account would be raised to Rs 15 lakh from the present level of Rs 5 lakh.</p>.<p>"Legal Heirship Certificate or its equivalent certificate issued by competent government authority will be an acceptable document for transmission of securities," the regulator said.</p>.<p>According to Sebi, the objective is to ensure that uniform processes are followed by the Registrars to an Issue and Share Transfer Agents (RTAs) / listed companies, which would further ease the transmission process for investors.</p>.<p>The board of Sebi also approved the budget for the regulator for the financial year 2022-23.</p>.<p><em><strong>Check out the latest DH videos here:</strong></em></p>
<p>Seeking to put in place a stricter regulatory framework for collective investment schemes, markets watchdog Sebi has decided to enhance the net worth criteria and track record requirements for entities managing such schemes.</p>.<p>The regulator has also approved changes to listing obligations and disclosure requirement regulations for simplification of procedure for transmission of securities.</p>.<p>It also gave the nod to amend regulations to enable Sebi-registered custodians to provide custodial services in respect of silver or silver-related instruments held by silver ETFs of mutual funds.</p>.<p>These decisions were taken at a board meeting of Sebi held on Tuesday.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/psu-disinvestment-sebi-proposes-relaxing-provisions-for-open-offer-price-determination-1094833.html" target="_blank">PSU disinvestment: Sebi proposes relaxing provisions for open offer price determination</a></strong></p>.<p>Amid instances of investors getting defrauded by fraudulent money pooling schemes, the regulator would also restrict a Collective Investment Management Company (CIMC) and its group/associates/shareholders' shareholding in a scheme at 10 per cent or representation on the board of another CIMC to avoid conflict of interest.</p>.<p>Besides, the mandatory investment of CIMC and its designated employees in the Collective Investment Schemes (CIS) have to align their interests with that of the CIS.</p>.<p>Sebi said the net worth criteria would be enhanced and a requirement of having a track record in a relevant field as an eligibility requirement for registration as a CIMC would be put in place.</p>.<p>Among others, there would be a "mandatory requirement of a minimum number of investors, maximum holding of a single investor and minimum subscription amount at CIS level," Sebi said.</p>.<p>The regulator said there would be a rationalisation of fees and expenses to be charged to the scheme as well as a reduction of timelines for the offer period of the scheme, allotment of units and refund of money to investors.</p>.<p>The changes have been proposed to "strengthen the regulatory framework for CIS in line with Mutual Fund regulations to remove regulatory arbitrage," the release said.</p>.<p>To simplify the procedure for transmission of securities, the existing threshold limit for simplified documents would be revised to Rs 5 lakh from Rs 2 lakh currently for securities held in physical mode per listed issuer.</p>.<p>Also, the threshold in this regard for securities held in the dematerialised mode for each beneficiary account would be raised to Rs 15 lakh from the present level of Rs 5 lakh.</p>.<p>"Legal Heirship Certificate or its equivalent certificate issued by competent government authority will be an acceptable document for transmission of securities," the regulator said.</p>.<p>According to Sebi, the objective is to ensure that uniform processes are followed by the Registrars to an Issue and Share Transfer Agents (RTAs) / listed companies, which would further ease the transmission process for investors.</p>.<p>The board of Sebi also approved the budget for the regulator for the financial year 2022-23.</p>.<p><em><strong>Check out the latest DH videos here:</strong></em></p>