(1) In these regulations, unless the context otherwise requires:
(a) ―Act‖ means the Securities and Exchange Board of India Act, 1992(15 of 1992);
(b) ―advertisement‖ includes:
(i) notices, brochures, pamphlets, circulars, showcards,catalogues, hoardings, placards, posters, insertions in newspapers,pictures, films and cover pages of offer documents;
(ii) any other matter to which publicity is given through printmedium, radio, television programmes or electronic media;
(c) ―appraising agency‖ means an agency empanelled with the Board forthe purpose of conducting technical or financial appraisal of the 1 [collective investment scheme];
(d) ―associate‖ in relation to a collective investment managementcompany or trustee, includes a person:
(i) who, directly or indirectly, by himself, or in combination withother persons, exercises control over the Collective InvestmentManagement Company or the trustee, as the case may be, or 1 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
(ii) in respect of whom the Collective Investment ManagementCompany or the trustee, as the case may be directly or indirectly, byitself, or in combination with other persons, exercises control, or
(iii) whose director, officer or employee is a director, officer oremployee of the Collective Investment Management Company orthe trustee, as the case may be;
(e) ―auditor‖ means a person qualified to audit the accounts ofcompanies under the Companies Act, 1956;
(f) ―Board‖ means the Securities and Exchange Board of Indiaestablished under the provisions of section 3 of the Act;
(g) ―certificate‖ means a certificate of registration granted underregulation 10 of these regulations;
(h) ‖Collective Investment Management Company‖ means a companyincorporated under the Companies Act, 1956 (1 of 1956) and registeredwith the Board under these regulations, whose object is to organise,operate and manage a collective investment scheme;
(i) ―collective investment scheme‖ has the meaning assigned to it bysub-regulation (2) of this regulation;
(j) ―closed-ended 2 [collective investment scheme]‖ means any 3 [collective investment scheme] launched by a CollectiveInvestment Management Company, in which the period of maturity of the 4 [collective investment scheme] is specified and there is no provision for re-purchase before theexpiry of the maturity of the 5 [collective investment scheme];
(k) ―control‖ or ―controlling interest‖ means control exercised orcontrolling interest held :
(i) in case of a company, by any person or combination of personswho directly or indirectly own, control or hold shares carrying notless than 10% of the voting rights of such company; or
(ii) (ii) as between two companies, if the same person or combinationof persons, directly or indirectly, own, control or hold shares carryingnot less than 10% of the voting rights of each of the two companies;or
(iii) (iii) majority of the directors of any company who are in a positionto exercise control over the Collective Investment ManagementCompany;
(l) ―credit rating agency‖ means a body corporate registered underSecurities and Exchange Board of India (Credit Rating Agencies)Regulations, 1999;
(m) ―depository‖ means a body corporate as defined in the DepositoriesAct, 1996 (22 of 1996);
(n) ―economic offence‖ means an offence to which the EconomicOffences (Limitation of Prosecutions) Act, 1974 (12 of 1974) applies forthe time being;
(o) ―form‖ means any of the forms specified as such in the FirstSchedule;
(p) ―fraud‖, has the same meaning as is assigned to it in section 17 ofthe Indian Contract Act, 1872 (9 of 1872);
(q) ―inspecting officer‖ means any person appointed as such by theBoard under Chapter VII of these regulations;
2 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
3ibid.
4ibid.
5ibid.
(r) ―key personnel‖ in relation to a company, means the persons whoexercise effective control over its affairs;
(s) ―net worth‖ means the aggregate value of the paid-up equity capitaland free reserves (excluding funds created out of revaluation), reducedby the aggregate value of accumulated losses and deferred expenditurenot written off, including miscellaneous expenses not written off;
(t) ―offer document‖ means any document by which applications forsubscribing to units of the 6 [collective investment scheme] are invited from the public;
(u) ―regulation‖ means a regulation forming part of these regulations;
(v) ―relative‖ means a person who is a relative, as defined in section 6 ofthe Companies Act, 1956 (1 of 1956);
(w) ―registrars to an issue and share transfer agent‖ means a personregistered as Registrars to an Issue and Share Transfer Agents underthe Securities and Exchange Board of India (Registrar to an Issue andShare Transfer Agents) Regulations, 1993;
(x) ―schedule‖ means any of the schedule appended to theseregulations;
7 [(y) ****]
(z) ― 8 [collective investment scheme] property‖ includes:
i. subscription of moneys or money‘s worth (including bankdeposits) to the 9 [collective investment scheme];
ii. property acquired, directly or indirectly, with, or with theproceeds of, subscription of money referred to in item (i) of thisClause; or iii. income arising, directly or indirectly, from subscription moneyor property referred to in item (i) or (ii), z) ―securities laws‖ means:
i. the Securities and Exchange Board of India Act, 1992 (15 of1992);
ii. the Securities Contracts (Regulation) Act, 1956 (42 of 1956);and iii. the Depositories Act, 1996 (22 of 1996), as amended from timeto time;
aa) ―stock broker‖ means a stock broker as defined in Securities andExchange Board of India (Stock Brokers and Sub-brokers) Rules, 1992;
bb) ―trustee‖ means a person who holds the property of the collectiveinvestment scheme in trust for the benefit of the unit holders, inaccordance with these regulations;
cc) ―unit‖ includes any instrument issued under a 10 [collective investment scheme], by whatevername called, denoting the value of the subscription of a unit holder; and dd) ―unit holder‖ means a person holding a unit in a 11 [collective investment scheme].
6 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
7Omitted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f.
9-1-2014.
8 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
9ibid.
10 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
12 [(2) In these regulations the expression ‗collective investment scheme‘ shallhave the same meaning as assigned to it under section 11AA of the Act.]
(3) Words and expressions used and not defined in these regulations, butdefined in the Act shall have the same meanings as are respectively assignedto them in the Act.
CHAPTER II REGISTRATION OF COLLECTIVE INVESTMENT MANAGEMENT COMPANY
11ibid.
12 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2000,w.e.f. 14-2-2000. Prior to its substitution the sub-regulation 2 of Regulation 2 read as under:
"(a) the purpose of which is to enable the investors to participate in the scheme or arrangementsby way of subscriptions and to receive profits or income or produce arising from the managementof such property or the investments made thereof; and
(b) in which the subscriptions of the investors by whatever name called, are pooled, and areutilized for the purposes of the schemes or the arrangements; and
(c) in which the property or such subscriptions are managed on behalf of the investors, who do nothave day to day control over the management or operation of the scheme, whether or not suchproperties or subscriptions and the investments made thereof are evidenced by identifiableproperties or otherwise;
Provided that following shall not be deemed to be a collective investment scheme:
(a) acceptance of deposits by companies under section 58A of the Companies Act, 1956 (1 of1956) or by Non-Banking Financial Companies as defined in section 45-I of the Reserve Bank ofIndia Act, 1934 ( 2 of 1934 );
b) acceptance of funds by Chit Funds in terms of the Chit Funds Act, 1982 (40 of 1982);
(c) acceptance of funds by companies declared as Nidhi companies under section 620A of theCompanies Act, 1956, ( 1 of 1956 ), as per directions issued under, section 637A of the said Act;
(d) contracts of insurance under the Insurance Act, 1938 ( 4 of 1938 );
(e) any scheme of the employer as per Employees‘ Provident Fund and Miscellaneous ProvisionsAct, 1952, ( 19 of 1952); or any other recognized Provident Fund under the Income Tax Act,1961;
(f) arrangements of cooperative societies under the Cooperative Societies Act, 1912 ( 2 of 1912 )including Cooperative Societies registered under any Provincial Act or State Act for the timebeing in force;
(g) any scheme under Securities and Exchange Board of India (Mutual Funds ) Regulations, 1996;
or
(h) any other scheme or arrangement specifically exempted by the Board, from the operation ofthese regulations.‖ No Person Other than Collective Investment Management Company toLaunch 13 [collective investment scheme]
3. No person other than a Collective Investment Management Companywhich has obtained a certificate under these regulations shall carry on orsponsor or launch a collective investment scheme.
Application for grant of certificate.
4. Any person proposing to carry any activity as a Collective InvestmentManagement Company on or after the commencement of these regulationsshall make an application to the Board for the grant of registration in Form A.
14 [Application by a scheme or arrangement deemed to be a collective investment scheme