Ncfm Nism VA Corrigendum
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Transcript of Ncfm Nism VA Corrigendum
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Corrigendumto
WorkBookforCertifyingExaminationforMutualFundDistributors(lastupdated:July8,2011)
1. Additionalinformationonliquidfundsonpage13:Minimum duration of an interval period in an interval scheme/plan is 15 days. No
redemption/repurchaseofunitsareallowedexceptduringthespecifiedtransactionperiod(the
periodduringwhichbothsubscriptionandredemptionmaybemadetoandfromthescheme).
The specified transaction period will be of minimum 2 working days, as per revised SEBI
Regulations.
2. Answertopracticequestion4attheendofchapteroneis(a)True.3. Newguidelineontransferofschemesdiscussedinsection3.3.1isasfollows:Unitsofallmutualfundschemesheldindematformarefreelytransferable. OnlyinthecaseofELSS
Schemes, free transferability of units (whether demat or physical) is curtailed for the statutory
minimumholdingperiodof3years.
4. Section3.3.2hasbeenupdatestoincludethefollowing:SEBIhasprescribedadetailedformatforannualreportingonredressalofcomplaintsreceivedagainst
the mutual fund (including its authorised persons, distributors, employees etc.). The report
categorisesdifferentkindsofcomplaints. Foreachcomplaintcategory,themutualfundhastoreport
on
the
number
of
complaints,
the
time
period
in
which
they
were
resolved,
and
if
not
resolved,
for
howlongtheyremainunresolved.
Therevisedguidelineonmerger/consolidationofschemesis:
Themergerorconsolidationoftwoormoreschemeshassofarbeenconsideredasachange inthe
fundamentalattributesoftheschemes. Ithasnowbeenprovidedthatsuchmergerorconsolidation
shallnotbeconsideredachangeinthefundamentalattributeofthesurvivingschemeifthefollowing
conditionsaremet:
a) There is no other change in the Fundamental attributes of the surviving scheme i.e. thescheme
which
remains
in
existence
after
the
merger.
b) MutualFundsareabletodemonstratethatthecircumstancesmeritmergerorconsolidationofschemesandtheinterestoftheunitholdersofsurvivingschemeisnotadverselyaffected.
5. Insection5.1.3,KYDrequirementsareupdatedasfollows: KYDRequirementsAs part of Sebis drive to streamline the distribution process of mutual fund products, AMFI has
introducedtheKYDprocesstoverifythecorrectnessofthe informationprovided intheregistration
documentsandtohaveverificationoftheARNholders.
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Theprocessconsistsofdocumentverificationandbiometricprocess
Selfattested copy of the PAN card and specific documents as proof of address to besubmittedalongwithapplicationformattheCAMS PoS
Biometricprocessconsistsoftakingthe impressionofthe indexfingeroftherighthandoftheARNholder.ThiswillbedoneatthePoSatthetimesubmissionofdocuments
In case of nonindividual distributors, biometric process will be conducted on specifiedauthorizedpersons
AnacknowledgementconfirmingthecompletionofKYDprocessisreceivedfromtheCAMSPoS
A photocopy of the acknowledgement has to be sent to all the AMCs with whom thedistributorisempanelled
ThenewrulesisapplicabletonewregistrationsandrenewalshavecometoeffectfromSeptember1,
2010.AfterpassingtheexaminationandcompletingKYDrequirements,thenextstage istoregister
withAMFI. On registration,AMFIallotsanAMFI RegistrationNumber (ARN). Individuals from the
exemptedcategorydescribedabovecanobtaintheARNwithoutpassingtheCertifyingExamination,
providedtheyhaveattendedtheprescribedrefreshercourse.
6. Insection6.1.6,therevisedrequirementwrtlimitsonfeesforFundofFundsareAs regards Fund of Funds, the recurring expense limit (including management fees) was
previously 0.75%. The limits for Fund of Funds have been revised. The scheme can choose
betweenthefollowing:
a) ManagementFeelimitof0.75%ofnetassets;or
b)
Management
Fees
plus
Scheme
Running
Expenses
plus
Charges
levied
by
underlying
schemes(weightedaverageoftotalexpenseratioofunderlyingschemes)limitof2.50%ofnet
assets.
7. Insection6.1.5,thefollowinghavebeenupdated:Allnewfolios/accountsshallbeopenedonlyafterensuringthatallinvestorrelateddocuments
includingaccountopeningdocuments,PAN,KYC,PoA(ifapplicable),specimensignatureare
availablewithAMCs/RTAsandnotjustwiththedistributor.
Forexistingfolios,AMCsareresponsibleforupdationoftheinvestorrelateddocumentsincluding
accountopening
documents,
PAN,
KYC,
PoA
(if
applicable),
specimen
signature
by
November
15,
2010.
8. Section6.3.3hasbeenupdatedasfollows:Dividenddistributiontax(DDT)ondividendsdistributedtocorporateinvestorsbyallcategoriesof
debtfundshavebeenincreasedto30%wefJune1,2011.
9. Section7.1hasbeenupdatedtoinclude: Foreign investors can invest in equity schemes of MFs registered with SEBI after
completingKYCprocess.
10. Insection7.2,RevisedKYCrequirementsareupdatedas:
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PreviouslyitwascompulsoryforallinvestmentsofRs50,000andabovetobecompliantwiththe
regulatory requirements prescribed under the AntiMoney Laundering Act, 1992 and SEBI
circularsinthisregard.
The regulations have now been revised. The following investors have to be KYC compliant,
irrespectiveoftheinvestmentvalue:
1. Nonindividualinvestorsi.e.companies,partnershipfirms,trusts,HUFetc.2. NonResidentIndians3. Investorscomingthroughchanneldistributors
11.Section7.6.4,hasbeenupdatedas:Thirdparty cheques are not accepted except in special cases such as grandparents/parents
makingpaymentsnotexceedingRs.50,000onbehalfofaminor,employermakingpaymentson
behalf of employee through payroll deductions and custodian on behalf of FIIs. AMCs are
requiredtoputchecksandbalancesinplacetoverifysuchtransactions.
12.Section7.6.8hasbeenupdatedas:TheapplicableNAVforswitchintransactionstoliquidfundsistheNAVofthedayprecedingtheday
ofapplicationprovided
Theapplicationisreceivedbeforecutofftime Fundscreditedtotheschemesaccountbeforecutofftime Fundsavailableforutilizationwithoutusinganycreditfacilities