Reg.   No	Obligation of the Sponsor	Reg. No	Rights & Obligations of Trustees	Reg. No.	Obligations of Asset Management Company
	Obligations		Obligations
3, 4 ,5 & 6  Ist Schedule	File application in Form A containing sponsor’s details for seeking registration and also pay non- refundable application fee	18(1)	Trustees & AMC to enter into investment management agreement with prior approval of SEBI
7(c) & 21 (f)	Sponsor to contribute 40% of the networth of the AMC and also to recapitalise in case of shortfall in networth	18(22)	Trustees to abide by code of conduct as specified in Fifth Schedule	25(16)	AMC shall be abide by the code of conduct as specified in the Fifth Schedule
10(a)	Registration granted to a Mutual Fund is subject to the sponsor complying with the provisions of the regulations.	18(4)	Trustees to ensure that before launch of scheme AMC has systems in place for back office etc. appointed all key personnel, auditors, compliance officers, prepare manual, specified norms etc.	25(15)                             25(14)	AMC shall appoint Registrar & Share Transfer Agents, who are registered with SEBI, provided that if the work is done in-house, then the rates charge must be competitive and for higher rates reasons for charging higher rates must be disclosed.      AMC shall not appoint any key personnel, who is guilty of economic offences or involved in violation of securities laws.
14	The Trust Deed is to be executed by the sponsor for setting up the Fund.	18(5)	Trustees to ensure that AMCs has been diligent in empanelling brokers in monitoring securities transactions and avoiding undue concentration with any broker.
38	In case of guaranteed return schemes, the sponsor has to meet the shortfall, if any.	18(6)	Trustees to ensure that AMC has not given undue and unfair advantage to any associate.	25(10)        25(11)                          25(7)(a)                 25(7)(b)                             25(8)	In case an AMC enters into securities transactions with any of its associates, a report should be sent to the trustees at its next meeting.   In case, any company has invested more than 5% of NAV scheme, an investment made by the scheme or by any other scheme of the same mutual fund in that company or its subsidiaries shall be brought to the notice of the trustees by the AMC and disclosed in half-yearly and annual accounts with justification for investment.   An AMC shall not deal with any associated brokers of the Sponsor for more than 5% of the quarterly business done by the mutual fund in all the schemes & the aforesaid limit of 5% shall apply for a block of any 3 months.  No AMC shall deal for more than 5% of quarterly business with any other brokers also for the business done by the Mutual Fund in all the schemes. However, in case the 5% limit exceeds, then AMC should record in writing the justification for exceeding the limit and report of all such investment are to be sent to the trustees on a quarterly basis. The aforesaid limit shall also apply for a block of 3 months.  An AMC shall not utilise the services of the sponsor or any of its associates, employees or their relatives, for the purpose of any securities transaction and distribution and sale of securities unless proper disclosure to this effect is made to the unitholders and the brokerage or commission paid is also disclosed in the Half Yearly/Annual Accounts of the Mutual Fund.

 

 
 

		Reg. No	Rights & Obligations of Trustees	Reg. No.	Obligations of Asset Management Company
			Obligations
		18(7)	Trustees to ensure that transactions entered into by AMC are in accordance with the Regulations and the scheme.	25(4)	AMC to submit quarterly report on its activities and compliance with Regulations.
		18(13)	Trustees to ensure that transactions in mutual fund are in accordance with the trust deed.	25(1)	The AMC to take reasonable steps to ensure that investments of funds pertaining to a scheme has been invested in accordance with the Regulations.
		18(8)	Trustees to ensure that AMC has been managing the schemes independent of other activities and have taken adequate steps to ensure that investors of all schemes are not being compromised with those of any other scheme or of other activities of AMC.	25(2)	AMC to exercise due diligence and care with all its investment decisions, as would be exercised by other persons engaged in the same business.
		18(9)	Trustees to ensure that all activities of AMC are in accordance with the Regulations
		18(16)	Trustees to call for details of transactions by key personnel of the AMC in his own name or on behalf of AMC and shall report to Board as and when required.	25(9)              25(`12)                 25(13)	AMC shall file with the trustees details of transaction in securities by key personnel in their own name or on behalf of the AMC and also report to SEBI at its next meeting.     The AMC shall file with the trustees and SEBI detailed bio-data of all directors of AMC along with their interest in other companies within 15 days of their appointment in any change in the interest of directors every six months.      Directors of the AMC shall file with the trustees, a statement of holding of securities at the end of each financial year along with dates of acquisition.
		18(17)	Trustees to quarterly review all transactions between the mutual fund, AMC and its associates.	25(4)	The AMC shall submit quarterly reports on all its activities and compliance with the Regulations to the trustees.
		18(18)	Trustees quarterly to review net worth of AMC and ensure that the AMC makes up the shortfall.
		18(24)	The independent trustees shall give their comments on the reports received from AMC regarding the investment by Mutual Funds in the securities of Group Companies of the Sponsor.
		20(2)	The appointment of an Asset Management Company can be terminated by majority of the trustees or by seventy five per cent of the unitholders of the scheme.
		22 (c)	The prior approval of the trustees is required before the appointment of Directors of Asset Management Company	22 (c)	The appointment of Director of AMC shall be made only with the prior approval of the trustees.
		22 (e)	Any change in the controlling interest of AMC shall be only with the prior approval of the trustees, SEBI and the unitholders.	22 (e)	Any change in the controlling interest of AMC shall be only with the prior approval of the trustees, SEBI and the unitholders.
		22 (f)	The trustees can call for such information and documents from AMC as and when required.	22 (f)	The AMC shall furnish such information and documents as and when required by the trustees.
				22(b)	The AMC shall inform SEBI for any material change in the information or particulars previously furnished, which have a bearing on the approval granted by SEBI.
				24 (1)	The AMC shall not act as a trustees of any mutual fund.
				24 (2)	The AMC shall not undertake any other business activities except management and advisory services to offshore funds, pension funds, provident funds, venture capital funds, management of insurance funds, financial consultancy and exchange of research on commercial basis provided AMC shall meet the Capital Adequacy Requirement, if any, separately for each activity and obtain separate approval from SEBI.
				24 (3)	The AMC shall not invest in any of its schemes unless full disclosure of its intention to invest has been made in case of schemes launched after the Notification of these Regulations.
				25(12) (c)	The AMC shall file with the trustees, a quarterly report, giving details and adequate justification about the purchase and sale of securities of the Group Companies of the Sponsor or the AMC as the case may be by the Mutual Fund during the said quarter.

 

 
 

Reg. No	Rights & Obligations of Trustees	Reg. No.	Obligations of Asset Management Company
	Obligations
18(19)	Trustees to periodically review all service contracts.
18(20)	Trustees to ensure that there is no conflict of interest between the manner in which the AMC has deployed its net worth and the interest of the unit holders.
18(21)	Trustees to periodically review the investor complaints and redressal by AMC.
18(14)	Trustees to be responsible for calculation of any income due to be paid to the mutual fund, any income received in the mutual fund.
18(12)	Trustees to be accountable for and be the custodians for the scheme property.
18(11)	Trustee to file details of his holding in securities on a half-yearly basis with the trust.
18(10)	Trustees to take such remedial steps as necessary and inform SEBI of the action taken by the trustees, in case the conduct and business of the mutual fund is not in accordance with the Regulations.
18(23(a)	Trustees to report to SEBI on a half-yearly basis on the activities of the mutual fund.

 

 
 

Reg. No	Rights & Obligations of Trustees		Reg. No.		Rights & Obligations of Asset Management Company
	Obligations
18(23)(b)		Trustees to certify to SEBI half-yearly that they have satisfied themselves that there have been no instances of self-dealing or front running by any of the trustees, directors and key personnel of the AMC.
18(23)(c)		Trustees to certify half-yearly that AMC has been managing the schemes independently of any other activities undertaking that the AMC and the unit holders interest has been protected.
18(15)		Trustees to obtain unit holders consent under certain circumstances .
		RIGHTS
18(3)		Trustees shall have a right to obtain from the AMC such information as considered necessary by the trustees.
25(5)		Trustees may at the request of AMC terminate the assignment of an AMC at any time.		25(6)              25(3)		Not-withstanding any such termination, the AMC and its directors and other officers shall not be absolve of liability to the mutual fund for their acts of omission and commission.      AMC shall be responsible for the acts of omission and commission by its employees or the persons, whose service have been procured by AMC.