SECURITIES AND EXCHANGE BOARD OF INDIA (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999

4A · Application by a scheme or arrangement deemed to be a collective investment scheme

9A · Criteria for fit and proper person

14A · Dispute Resolution

74A · Existing schemes or arrangements deemed to be a collective investment scheme to obtain provisional registration

74B · Exemption from enforcement of the regulations in special cases.

1 · . (1) These regulations may be called the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999.

2 · . (1) In these regulations, unless the context otherwise requires:

1 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

2 · [(e) "auditor" means a firm, including a limited liability partnership, constituted under the Limited Liability Partnership Act, 2008, who is eligible and qualified to audit the accounts of a company under section 141 of the Companies Act, 2013 (18 of 2013)];

3 · [(ea) "designated employees" of the Collective Investment Management Company includes: (i) chief executive officer, chief investment officer, chief risk officer, chief information security officer, chief operation officer, fund manager, compliance officer, sales head, investor relation officer, heads of other departments and dealer of the Collective Investment Management Company;

2 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution the sub -regulation (e) of Regulation 2 read as under:

3 · Inserted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10 -5 -2022.

4 · Inserted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10 -5 -2022.

5 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

6 · ibid.

7 · ibid.

8 · ibid .

9 · [(i) in the case of a company, by any person individually or together with persons acting in concert, who directly or indirectly own, control or hold shares carrying not less than ten percent of the voting rights of such company; or

12 · [(p) "fraud" means a fraud as defined in sub-clause (c) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003];

14 · [(v) "relative" means a person as defined in section 2(77) of the Companies Act, 2013 (18 of 2013).]

9 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, sub -regulation k (i) and (ii) of Regulation 2 read as under:

10 · Inserted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022.

11 · Omitted by the SEBI (Amendment) Regulations, 2022 w.e.f. 10-5-2022. Prior to its omission sub-regulation (n) of Regulation 2 read as under:

12 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, the sub -regulation (p) of Regulation 2 read as under:

13 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

14 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, sub -regulation (v) Regulation 2 read as under;

18 · [(aa) "securities laws" means the Act, the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Depositories Act, 1996 (22 of 1996), the provisions of any other law to the extent it is administered by the Board and the relevant rules and regulations made thereunder;]

21 · [(2) In these regulations the expression 'collective investment scheme' shall have the same meaning as assigned to it under section 11AA of the Act.]

15 · Omitted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

16 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

17 · ibid.

18 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, sub -regulation (aa) of Regulation 2 read as under:

19 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 20 ibid.

21 · 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:

22 · [(3) The words and expressions used and not defined in these regulations but defined in the Act, the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Companies Act, 2013 (18 of 2013), the Depositories Act, 1996 (22 of 1996), or any rules or regulations made thereunder shall have the same meanings respectively assigned to them in those acts, rules or regulations made thereunder or any statutory modification or re-enactment thereto, as the case may be.]

3 · . No person other than a Collective Investment Management Company which has obtained a certificate under these regulations shall carry on or sponsor or launch a collective investment scheme.

4 · . Any person proposing to carry any activity as a Collective Investment Management Company on or after the commencement of these regulations shall make an application to the Board for the grant of registration in Form A.

24 · [Application by a scheme or arrangement deemed to be a collective investment scheme

4A · (1) Any person proposing to carry on or sponsor or launch any scheme or arrangement which would be deemed to be a collective investment scheme under the proviso to sub-

22 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to substitution, the sub -regulation (3) of Regulation 2 read as under:

23 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

24 · Inserted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

5 · . (1) Any person who immediately prior to the commencement of these regulations was operating a 25 [collective investment scheme], shall subject to the provisions of Chapter IX of these regulations make an application to the Board for the grant of a certificate within a period of two months from such date.

6 · . Every application for registration under regulation 4 shall be accompanied by a non-refundable application fee as specified in the Second Schedule.

7 · . A An application, which is not complete in all respects or does not conform to the requirements of regulation 6 or regulation 9 shall be rejected by the Board Provided that before rejecting any such application, the applicant may be given an opportunity to remove within one month such objections as may be indicated by the Board Provided further that the Board may on sufficient reasons being shown extend the time in order to enable the applicant to remove such objections.

8 · . (1) The Board may direct the applicant to furnish such further information or clarification as may be required by it, for the purpose of processing the application.

25 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

9 · . The Board shall not consider an application for the grant of a certificate unless the applicant satisfies the following conditions, namely:—

26 · [(c) the applicant or its promoters should have a sound track record and general reputation of fairness and integrity in all their business transactions.

26 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, clause (c) of Regulation 9 read as under:

27 · [Criteria for fit and proper person

9A · . F For the purpose of determining whether an applicant or the collective investment management company is a fit and proper person, the Board may take into account the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.]

28 · [9B. (1) No Collective Investment Management Company or a promoter of a Collective Investment Management Company, their associates or group companies, through the schemes of the Collective Investment Management Company or otherwise, individually or collectively, directly or indirectly, have –

27 · Substituted by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-05-2008. Prior to its substitution Regulation 9A as inserted by the SEBI (Criteria for Fit and Proper Person) Regulations, 2004, w.e.f. 10-03-2004, read as under:

28 · Inserted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022.

10 · . (1) The Board may, on receipt of an application and on being satisfied that the applicant complies with the requirements specified in regulation 9, call upon the applicant to pay registration fee as specified in the Second Schedule.

11 · . The certificate granted under regulation 10 shall be subject to the following conditions, namely:—

31 · [(g) the Collective Investment Management Company shall enter into an agreement with a depository for dematerialization of the units of collective investment scheme proposed to be issued;

29 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

30 · Substituted for "one month" by the Securities and Exchange Board of India (Facilitation of Grievance Redressal

31 · Inserted, ibid .

12 · . (1) Where an application made under regulation 4 for grant of registration does not satisfy the conditions specified in regulation 9, the Board may reject the application after giving the applicant a reasonable opportunity of being heard and inform the applicant of the same.

13 · . The Collective Investment Management Company shall not:

14 · . Every Collective Investment Management Company shall:

32 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

33 · ibid.

34 · ibid.

35 · ibid.

36 · ibid.

37 · ibid.

38 · ibid.

39 · ibid.

40 · ibid.

48 · [(n) the Collective Investment Management Company and its designated employees shall invest such amounts in such schemes of the Collective Investment Management Company, as may be specified by the Board from time to time.]

49 · [14A. All claims, differences or disputes between the Collective Investment Management Company and investors arising out of or in relation to the activities of the Collective Investment Management Company in the securities market shall be submitted to a resolution mechanism that includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the Board.]

41 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

42 · ibid.

43 · ibid.

44 · Ibid .

45 · ibid.

46 · ibid.

47 · Substituted for the symbol '.' by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10 -5 -2022.

48 · Inserted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022.

49 · Inserted by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023, w.e.f., 04-07-2023.

50 · [Grievance Redressal Mechanism.

14B · (1) The Collective Investment Management Company shall redress investor grievances promptly but not later than twenty-one calendar days from the date of receipt of the grievance and in such manner as may be specified by the Board.

15 · . (1) The Collective Investment Management Company shall prepare quarterly reports (i.e., as at the end of March, June, September and December) on its activities and the position regarding compliance with these regulations and submit the same to the trustees within one month of the expiry of each quarter.

16 · . (1) A 52 [collective investment scheme] shall be constituted in the form of a trust and the instrument of trust shall be in the form of a deed duly registered under the provisions of the Indian Registration Act, 1908 (16 of 1908) executed by the Collective Investment Management Company in favour of the trustees named in such an instrument.

50 · Inserted by the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 w.e.f. 18-08-2023.

51 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

52 · ibid.

17 · . (1) The trust deed shall contain such clauses as are specified in the Fourth Schedule and such other clauses as are necessary for safeguarding the interests of the unit holders.

18 · . (1) Only persons registered with the Board as Debenture Trustee under Securities and Exchange Board of India (Debenture Trustee) Regulations, 1993 shall be eligible to be appointed as trustees of collective investment scheme.

19 · . N No person shall be appointed as trustee of a 55 [collective investment scheme] if—

20 · . (1) The trustee and the Collective Investment Management company shall enter into an agreement for managing the 56 [collective investment scheme] property.

53 · ibid.

54 · ibid.

55 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

56 · ibid.

57 · Ibid .

58 · ibid. d.

21 · (1) The trustee shall have a right:—

59 · ibid.

60 · ibid.

61 · ibid.

62 · ibid.

63 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

64 · ibid.

65 · ibid.

66 · ibid.

67 · ibid.

68 · ibid.

69 · ibid.

70 · ibid.

71 · ibid. d.

72 · ibid.

73 · ibid. d.

74 · ibid.

75 · ibid.

76 · ibid.

77 · ibid.

78 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

79 · ibid.

80 · ibid.

81 · ibid.

22 · . (1) The trusteeship of a trustee shall come to an end—

82 · ibid.

83 · ibid.

84 · ibid.

85 · ibid.

86 · ibid.

87 · ibid.

88 · ibid.

89 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

90 · ibid.

91 · ibid .

92 · ibid.

23 · . (1) The agreement referred to in regulation 20 entered into by the trustee with the Collective Investment Management Company may be terminated—

93 · ibid.

94 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

24 · . (1) No 99 [collective investment scheme] shall be launched by the Collective Investment Management Company unless such 100 [collective investment scheme] is approved by the Trustee.

95 · ibid.

96 · ibid.

97 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

98 · Ibid. .

99 · ibid.

100 · ibid.

101 · ibid.

109 · [Closure of subscription list

25 · . N No 110 [collective investment scheme] shall provide guaranteed or assured returns.

102 · ibid.

103 · ibid.

104 · ibid.

105 · ibid.

106 · ibid.

107 · ibid.

108 · ibid.

109 · Inserted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022

110 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

26 · . (1) The Collective Investment Management Company shall before launching any 111 [collective investment scheme] file a copy of the offer document of the 112 [collective investment scheme] as referred to in sub -regulation (1) of regulation 24 with the Board and pay filing fees as specified in the Second Schedule.

27 · . ( (1) Advertisements in respect of every 114 [collective investment scheme] shall be in conformity with the Advertisement Code as specified in the Seventh Schedule.

28 · . The appraising agency whose appraisal report forms part of the offer document and has given a written consent for the inclusion of the appraisal report in the offer document shall be liable for any statement in the appraisal report which is misleading, incorrect or false.

29 · . (1) The offer document and advertisement materials shall not be misleading or contain any statement or opinion which are incorrect or false.

111 · ibid.

112 · ibid.

113 · ibid.

114 · ibid.

115 · ibid.

116 · ibid.

117 · [Offer period

30 · No collective investment scheme shall be open for subscription for more than fifteen days: Provided that collective investment scheme may be kept open for subscription for a maximum of another fifteen days subject to issuance of public notice by the Collective Investment Management Company before the expiry of initial fifteen days.]

31 · . (1) The Collective Investment Management Company shall specify in the offer document,— (a) the minimum and the maximum subscription amount it seeks to raise under the 118 [collective investment scheme]; and

120 · [(3) Any amount refundable under sub-regulation (2) or proviso to sub-regulation (6) of regulation 24, shall be refunded within a period of five working days from the date of closure of subscription list, by cheque or demand draft marked "A/C Payee" through 121 [Speed Post with Registration with Acknowledgement Due] or speed post, courier etc., or payment channels such as RTGS, NEFT, IMPS, direct credit, etc. or any other mode allowed by the Reserve Bank of India from time to time, to the applicants.]

117 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, Regulation 30 read as under:

30 · No collective investment scheme shall be open for subscription for more than 90 days.”

118 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 . 119 ibid.

120 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, the sub -regulation (3) of Regulation 31 read as under:

121 · Substituted for the words "Registered A.D." by the SEBI (Substitution of Registered Post with Speed Post) (Amendment) Regulations, 2025, w.e.f. 5-12-2025 .

122 · Substituted for the words "six weeks" by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10 -5 -2022.

32 · . The Collective Investment Management Company shall issue to the applicant whose application has been accepted, 123 [the units only in dematerialized form within a period of five working days] from the date of closure of the subscription list 124 [.] 125 [***]

33 · . (1) A unit certificate issued under the 126 [collective investment scheme] shall be freely transferable.

34 · . (1) The subscription amount received shall be kept in a separate bank account in the name of the 127 [collective investment scheme] and shall be utilised for—

123 · Substituted for the words "unit certificates as soon as possible but not later than six weeks" by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022.

124 · Substituted for the symbol ":" by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10 -5 -2022.

125 · Omitted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to omission, proviso to Regulation 32 read as under:

126 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

127 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. . 128 ibid.

35 · . The Collective Investment Management Company shall:

142 · [(e) not invest more than twenty five percent of the amount raised by Collective Investment Management Company in projects owned directly or indirectly by Collective Investment Management Company.]

36 · . The units of every 144 [collective investment scheme] shall be listed immediately after the date of allotment of units and not later than six weeks from the date of closure of the 145 [collective investment scheme] on each of the stock exchanges as mentioned in the offer document.

129 · ibid.

130 · ibid.

131 · Ibid .

132 · ibid.

133 · ibid.

134 · ibid.

135 · ibid.

136 · ibid.

137 · ibid.

138 · ibid.

139 · ibid.

140 · ibid.

141 · ibid.

142 · Inserted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022.

143 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

144 · ibid.

145 · ibid.

37 · . (1) A 147 [collective investment scheme] shall be wound up on the expiry of duration specified in the 148 [collective investment scheme] or on the accomplishment of the purpose of the 149 [collective investment scheme] .

146 · ibid.

147 · ibid.

148 · ibid.

149 · ibid.

150 · ibid .

151 · ibid.

152 · ibid.

153 · ibid.

154 · ibid.

155 · ibid.

156 · ibid.

157 · ibid.

158 · ibid.

159 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. .

160 · ibid.

161 · ibid.

162 · [collective investment scheme] concerned in

38 · . On and from the date of the publication of notice under sub-regulation (3) of regulation 37, the trustee or the Collective Investment Management Company as the case may be, shall cease to carry on any business activities in respect of the 168 [collective investment scheme] so wound up.

39 · . I If, after the receipt of the report under sub-regulation (5) of regulation 37, the Board is satisfied that all the measures for winding up of the 170 [collective investment scheme] have been complied with, the 171 [collective investment scheme] shall cease to exist.

162 · ibid.

163 · ibid.

164 · ibid.

165 · ibid

166 · ibid.

167 · ibid.

168 · ibid.

169 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. .

170 · ibid.

171 · ibid.

40 · . (1) Every Collective Investment Management Company shall—

41 · . The financial year for all the 176 [collective investment scheme]s shall end as on March 31 of each year.

42 · . The Collective Investment Management Company shall,

43 · . (1) The Collective Investment Management Company shall:

172 · ibid.

173 · ibid.

174 · ibid

175 · ibid.

176 · ibid.

177 · ibid.

178 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

179 · ibid.

180 · ibid.

44 · . (1) Every 181 [collective investment scheme] shall have the annual statement of accounts audited by an auditor who is empanelled with the Board and who is not in any way associated with the auditor of the Collective Investment Management Company.

45 · . (1) The auditor of the 185 [collective investment scheme] shall, as soon as possible, notify the Board and the trustee in writing if he has reasonable grounds to suspect that a contravention of the regulations has occurred or if the 186 [collective investment scheme]s are not conducted on sound commercial principles.

181 · Ibid.

182 · ibid.

183 · ibid.

184 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

185 · ibid.

186 · ibid.

187 · ibid.

188 · ibid.

46 · . (1) The trustee, after prior approval of the trustee and for reasons to be recorded in writing remove the auditor of the v for misconduct or inefficiency after giving the auditor a reasonable opportunity of hearing :

47 · . (1) The 191 [collective investment scheme] wise annual report or an abridged form thereof shall be published in a national daily as soon as possible but not later than two calendar months from the date of finalisation of accounts.

48 · . (1) The Collective Investment Management Company and the trustee, shall make such disclosures or submit such documents as they may be called upon by the Board to make or submit. (2) Without prejudice to the generality of sub-regulation (1), the Collective Investment Management Company on behalf of the 192 [collective investment scheme] shall furnish the following periodic reports to the Board, namely:

189 · Ibid.

190 · ibid.

191 · ibid.

192 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

193 · ibid.

49 · . A Collective Investment Management Company, on behalf of the 195 [collective investment scheme] shall before the expiry of one month from the close of each quarter that is 31st March, 30th June, 30th September and 31st December publish its unaudited financial results in one daily newspaper having nationwide circulation and in a newspaper published in the language of the region where the Head Office of the Collective Investment Management Company is situated.

50 · . T The trustee shall ensure that the Collective Investment Management Company shall make such disclosures to the unit holders as are essential in order to keep them informed about any matter which may have an adverse bearing on their investments.

51 · . The calling of meeting of unit holders as well as transfer and transmission of units of 197 [collective investment scheme] shall be as per the provisions of the Eighth Schedule.

194 · ibid.

195 · ibid

196 · ibid.

197 · ibid.

52 · . (1) The Board may appoint one or more persons as Inspecting Officer to undertake the inspection of the books of account, records, documents and infrastructure, systems and procedures or to investigate the affairs of the trustee and Collective Investment Management Company for any of the following purposes, namely:

53 · . (1) Before ordering an inspection under regulation 52 the Board shall give not less than ten days' notice to the Collective Investment Management Company or trustee as the case may be.

54 · . (1) It shall be the duty of the trustee or Collective Investment Management Company whose affairs are being 32 inspected or investigated, and of every director, officer and employee thereof, to produce such books, accounts, records, and other documents in its custody or control and furnish him such statements and information relating to the activities as trustee or Collective Investment Management Company, as the inspecting officer may require, within such reasonable period as the inspecting officer may specify.

55 · . The inspecting officer shall, on completion of the inspection or investigation, submit a report to the Board:

198 · Action on inspection or investigation report

56 · . The Board or the Chairman shall after consideration of inspection or investigation report take such action as the Board or Chairman may deem fit and appropriate including action under 199 Chapter V of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008].]

57 · . (1) Without prejudice to the provisions of regulation 52, the Board shall have the power to appoint an auditor to inspect or investigate, as the case may be, into the books of account or the affairs of the trustee or Collective Investment Management Company in respect of 200 [collective investment scheme]s :

198 · Substituted by the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. Prior to substitution the regulation 56 read as under:

56 · (1) The Board shall, after consideration of the report referred to in regulation 55, communicate the findings to the trustee or Collective Investment Management Company as the case may be, and give him an opportunity of being heard within fourteen days from the date of receipt of such communication.

199 · Substituted for "the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002" by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-05-2008.

200 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

58 · . 201 [***]

202 · Liability for action in case of default

59 · . In case a Collective Investment Management Company—

60 · . to 64 . 205 [***]

65 · . T The Board may, in the interests of the securities market and the investors and without prejudice to its right to initiate action under this Chapter, including initiation of criminal prosecution under section 24 of the Act, give such directions as it deems fit in order to ensure effective observance of these regulations, including directions:

201 · Omitted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f. 27 -09 -2002.

202 · Substituted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f, 27 -09 -2002.

203 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

204 · Substituted for "the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002" by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-05-02008.

205 · Regulations 60 to 64 omitted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f. 27-09-2002.

206 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 207 ibid.

66 · . The Board may initiate action for suspension or cancellation of registration of an intermediary holding a certificate of registration under section 12 of the Act who fails to exercise due diligence in the performance of its functions or fails to comply with its obligations under these regulations: Provided that no such certificate of registration shall be suspended or cancelled unless the procedure specified in the regulations applicable to such intermediary is complied with.

210 · 67 . Any person aggrieved by an order of the Board made, on and after the commencement of the Securities Laws (Second Amendment) Act, 1999, (i.e., after 16th December, 1999), under these regulations may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.]

68 · . (1) Any person who has been operating a collective investment scheme at the time of commencement of these regulations shall be deemed to be an existing collective investment scheme and shall also comply with the provisions of this Chapter.

208 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 . 209 ibid.

210 · Substituted by the SEBI (Appeal to the Securities Appellate Tribunal) (Amendment) Regulations, 2000, w.e.f. 2803 -2000. Prior to its substitution the regulation read as under:

211 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

69 · . No existing collective investment scheme shall launch any new 214 [collective investment scheme] or raise money from the investors even under the existing 215 [collective investment scheme], unless a certificate of registration is granted to it by the Board under regulation 10.

70 · . (1) The applicant for the purpose of being considered eligible for the grant of provisional registration shall satisfy the Board that—

212 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

213 · ibid. d.

214 · ibid.

215 · ibid.

216 · ibid.

217 · ibid.

218 · ibid.

71 · . (1) The Board after being satisfied that the conditions specified in regulation 70 are fulfilled may grant provisional registration to the applicant subject to the following conditions, namely :—

219 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 . 220 ibid.

221 · Word "one" in clause (a) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002.

222 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

223 · Word "one" in clause (b) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002.

224 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

225 · Word "one" in clause (c) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002.

226 · Word "one" in clause (d) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002.

227 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

228 · Word "one" in clause (e) of sub-regulation (1) of Regulation 71 is substituted by the Securities and Exchange Board of India (Collective Investment Schemes) (Amendment) Regulations, 2002, w.e.f, 17-01-2002.

229 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 230 ibid.

72 · . (1) An existing Collective Investment Scheme which satisfies the Board that the requirements specified in regulation 9 and the conditions specified under regulation 71 have been fulfilled, shall be granted a certificate of registration under regulation 10 upon payment of registration fees as specified in paragraph 2 of the Second Schedule and on such terms and conditions as may be specified by the Board.

73 · . (1) An existing collective investment scheme which:

231 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

232 · ibid.

233 · ibid .

234 · ibid.

235 · ibid.

236 · ibid.

237 · ibid.

74 · . An existing collective investment scheme which is not desirous of obtaining provisional registration from the Board shall formulate a scheme of repayment and make such repayment to the existing investors in the manner specified in regulation 73.

244 · [CHAPTER IX A EXISTING SCHEMES OR ARRANGEMENTS DEEMED TO BE A COLLECTIVE INVESTMENT SCHEME

74A · (1) Any person who has been operating a scheme or arrangement deemed to be a collective investment scheme under the proviso to sub-section (1) of section 11AA of the Act at the time of commencement of the Securities and Exchange Board of India (Collective

238 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

239 · ibid.

240 · ibid .

241 · ibid.

242 · ibid.

243 · ibid.

244 · Inserted, ibid.

245 · [CHAPTER IX-B

74B · (1) The Board may, exempt any person or class of persons from the operation of all or any of the provisions of these regulations for a period as may be specified but not exceeding twelve months, for furthering innovation 246 [***] relating to testing new products, processes, services, business models, etc. in live environment of regulatory sandbox in the securities markets.

245 · Inserted by the SEBI (Regulatory Sandbox) (Amendment) Regulations, 2020, w.e.f. 17-04-2020.

246 · The words "in technological aspects" omitted by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, w.e.f. 03-08-2021.

75 · . In order to remove any difficulties in the application or interpretation of these regulations, the Board shall have the power to issue clarifications and guidelines in the form of notes or circulars which shall be binding on the trustee or Collective Investment Management Company or any other intermediary in the capital market.

12 · CAPITAL STRUCTURE AND SHAREHOLDING PATTERN :

13 · NET WORTH OF THE COMPANY :

14 · PRESENT LINE(S) OF BUSINESS ACTIVITIES:

15 · FINANCIAL INFORMATION :

16 · ACCOUNTING POLICIES:

17 · NAMES AND ACTIVITIES OF ASSOCIATE COMPANIES/CONCERNS CARRYING ON ACTIVITIES RELATED TO THE SECURITIES MARKET AND GRANTED REGISTRATION BY SEBI :

18 · MANAGEMENT OF THE COLLECTIVE INVESTMENT MANAGEMENT COMPANY:

19 · BOARD OF DIRECTORS :

20 · KEY MANAGEMENT PERSONNEL :

21 · OTHER EMPLOYEES :

22 · DETAILS OF INFRASTRUCTURAL FACILITIES :

23 · OFFICE SPACE :

24 · OFFICE EQUIPMENT :

25 · INVOLVEMENT IN CASES :

26 · AUDITORS

27 · OTHER INFORMATION :

28 · DOCUMENTS :

247 · [3. The fees referred to in paragraphs 1 and 2 above, shall be paid by way of direct credit into the bank account through NEFT/RTGS/IMPS or online payment using the SEBI Payment Gateway or any other mode as may be specified by the Board from time to time.]

247 · Substituted by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023 w.e.f 01.04.2023. Prior to its substitution, clause 3 read as under-

2 · Dissemination of information

3 · Conflict of interest

4 · Segregation

5 · . Integrity, investments as per objects, etc.

1 · Principal Clauses

248 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

249 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

250 · ibid.

251 · ibid.

2 · Trustee’s duties regarding information properly, etc.

252 · ibid.

253 · ibid .

254 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

255 · ibid.

256 · ibid.

257 · ibid.

258 · Ibid.

3 · . Obligations of the Company

259 · ibid.

260 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

261 · ibid.

262 · ibid.

263 · ibid.

264 · ibid.

265 · ibid.

266 · ibid.

267 · Ibid.

268 · ibid.

269 · ibid.

1 · The Collective Investment Management Company

270 · ibid.

271 · ibid.

272 · ibid.

273 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

274 · ibid.

275 · ibid.

276 · ibid.

277 · ibid.

278 · Ibid.

279 · ibid.

2 · The trustee :

3 · Meeting the losses

280 · ibid.

281 · ibid.

282 · ibid.

283 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

284 · ibid.

285 · ibid.

286 · Inserted by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023, w.e.f., 04-07-2023.

1 · Outer Cover Pages

1 · 1 Front Outer Cover Page

287 · ibid.

288 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014 .

289 · ibid.

290 · ibid.

1 · 2 Front Inside Cover Page

1 · 3 Inner Cover Pages

1 · 4 Back cover Pages Back

2 · Risk Factors

3 · Disclaimer Clause

291 · ibid.

292 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

4 · Undertaking from the Collective Investment Management Company

5 · Fictitious Applications

293 · ibid.

294 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

295 · ibid.

296 · Substituted for the words "registered post" by the SEBI (Substitution of Registered Post with Speed Post) (Amendment) Regulations, 2025, w.e.f. 5-12-2025 .

297 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

298 · ibid.

6 · Minimum Subscription Clause

7 · Maximum Subscription Clause

8 · Terms of the present issue

8 · 1 Terms of payments

8 · 2 Rights of the investors

8 · 3 How to apply - availability of forms, offer document and mode of payment

8 · 4 Any special tax benefits for investing in the 301 [collective investment scheme] .

9 · Appraisal of the Project

10 · Project relating to the 302 [collective investment scheme]

299 · ibid.

300 · ibid.

301 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. .

302 · ibid. .

303 · ibid.

304 · ibid.

11 · Management of the 306 [collective investment scheme]

11 · 1 This section shall describe the manner in which the 307 [collective investment scheme] is managed.

11 · 2 The identity of any other person who provides significant administrative or business management services and a brief description of the services provided and the compensation to be paid therefore.

11 · 3 The name and principal business address of the Registrars and Transfer Agents. A statement to the effect that the trustee and the Collective Investment Management Company have ensured that the Registrar has adequate capacity to discharge responsibilities with regard to processing of

305 · ibid.

306 · ibid.

307 · ibid.

308 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

309 · ibid.

11 · 4 Identification and name and address of the statutory auditor for the 310 [collective investment scheme] .

12 · Constitution of the Collective Investment Scheme

13 · Describe concisely the nature and the most significant attributes of the units being offered, including:

310 · ibid.

311 · ibid.

312 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

313 · ibid.

314 · ibid.

14 · Outstanding Litigations, Defaults, Dues, etc.

15 · Disclosure on investor grievances and redressal system

315 · ibid.

316 · ibid.

317 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. .

318 · ibid.

319 · ibid.

320 · ibid.

16 · Disclosures about stockinvests

17 · Despatch of Refund Orders

18 · Interest in case of delay in despatch of allotment letters/refund orders

19 · Appointment of Compliance Officer

321 · ibid.

322 · ibid.

323 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

324 · Substituted for the words "Registered Post" by the SEBI (Substitution of Registered Post with Speed Post) (Amendment) Regulations, 2025, w.e.f. 5-12-2025 .

20 · Promise vis -à -vis performance

21 · Utilisation of stockinvest by third parties

22 · Utilisation of stockinvest within 10 days

23 · Due Diligence Certificate

24 · The Collective Investment Management Company shall submit with the offer document the following certificates:

25 · Appointment of other intermediaries

325 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

326 · ibid.

26 · Offer document to be made public

27 · Despatch of Issue Material

28 · No Complaints Certificate

29 · Mandatory Collection Centres

30 · Authorised Collection agents

31 · Post issue Monitoring reports

32 · The trustee shall ensure that moneys received pursuant to the issue shall be utilised only after the minimum subscription as mentioned in the offer document has been received and a statement to that effect has been given by the Registrars to the Issue.

33 · Post -issue advertisements

33 · 1 Collective Investment Management Company shall ensure that in all issues, advertisement giving details relating to oversubscription, basis of allotment, number, value and percentage of applications received along with stockinvest, number, value and percentage of successful allottees who have applied through stockinvest, date of completion of despatch of refund orders, date of despatch of certificates is released within 10 days from the date of completion of the various activities in at least two national dailies.

327 · Substituted for the words "Registered Post with Acknowledgement Due" by the SEBI (Substitution of Registered Post with Speed Post) (Amendment) Regulations, 2025, w.e.f. 5-12-2025 .

33 · 2 Collective Investment Management Company shall ensure that advisors/brokers or any other agencies connected with the issue do not publish any advertisement stating that issue has been oversubscribed or indicating investors' response to the issue, during the period when the public issue is still open for subscription by the public.

33 · 3 Advertisement stating that the subscription list has been closed may be issued after the actual closure of the issue.

34 · Other responsibilities

34 · 1 In case of delay in refund of subscription moneys/excess subscription, the Collective Investment Management Company shall ensure that the interest for the delayed period as mentioned in the offer document, is paid to the applicants.

34 · 2 The Collective Investment Management Company shall ensure that the despatch of refund orders/allotment letters/share certificates is done by way of 328 [Speed Post with Registration]/certificate of posting as may be applicable.

35 · Certificate Regarding Realisation of Stockinvests

36 · The quantum of issue shall not exceed the amount specified in the offer document. However, an oversubscription to the extent of 10% of the amount mentioned is permissible for the purpose of rounding off to the nearer multiple of 100 while finalising the allotment.

37 · Updation of Offer Document

38 · Basis of Allotment

328 · Substituted for the words "registered post" by the SEBI (Substitution of Registered Post with Speed Post) .

329 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

330 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

39 · The Date of the Offer Document

40 · Trust Deed

41 · 331[Collective investment scheme]s and investments

331 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

332 · ibid.

333 · ibid.

334 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

335 · ibid.

336 · ibid.

337 · ibid.

338 · ibid.

339 · ibid.

340 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. .

341 · ibid.

342 · ibid.

343 · ibid.

344 · ibid.

345 · ibid.

346 · ibid.

347 · ibid.

348 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. .

349 · ibid.

350 · ibid.

351 · ibid.

352 · ibid.

353 · ibid.

354 · ibid.

355 · ibid.

356 · ibid.

357 · ibid.

358 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2022, w.e.f. 10-5-2022. Prior to its substitution, Part I of Ninth Schedule read as under:

358 · [PART I -CEILING ON EXPENSES

1 · Accounting norms for plantation 360 [collective investment scheme]

2 · Unit Capital

2 · 1 All amounts received from an investor, by whatever name called, during the period the 361 [collective investment scheme] is open for subscription shall be treated as towards the sale of units of the 362 [collective investment scheme] and shall be accounted as Unit Capital.

2 · 2 Unit capital will be disclosed in the Balance Sheet of the 363 [collective investment scheme] under the head "Sources of Funds" (in the same manner as Share Capital in the case of a limited company). No portion of Unit capital shall be apportioned to revenue or to any other account under any circumstances.

3 · Costs Relating to Land

3 · 1 Land Acquired with Ownership Rights should be accounted as a Fixed Asset in accordance with Accounting Standard 10 ('AS-10') on "Accounting for Fixed Assets" issued by ICAI. In respect of land with ownership rights, the cost of the land should be amortised over the

359 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014

360 · ibid.

361 · ibid.

362 · ibid.

363 · ibid.

364 · [collective investment scheme]period by way of a suitable charge to 'Crop Development Expenses'.

3 · 2 Land acquired under lease may either be against:

3 · 3 Land Development Expenses

3 · 4 Infrastructure and other facilities shall include :

364 · ibid.

365 · ibid.

366 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

367 · ibid.

3 · 5 IAS 36 requires that impairment losses in respect of assets should be recognised. Impairment arises whenever an asset's carrying amount exceeds its recoverable amount. All impairment losses should be provided for.

3 · 6 In case such assets are taken on lease, then the amounts spent should be accounted on the same basis as mentioned in Paragraph 3.2 and the disclosure requirements mentioned therein will also apply.

4 · Fixed Assets (other than land and related infrastructure facilities)

4 · 1 Such Fixed Assets should be accounted in accordance with AS -10 on "Accounting for Fixed Assets" issued by ICAI – Basically that the cost of a fixed asset comprises its purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 · 2 These assets should be depreciated as per Schedule XIV to the Companies Act, 1956.

4 · 3 Capital Subsidies received should be accounted as per Accounting Standard ('AS') – 12 on "Accounting for Government Grants" issued by ICAI – Basically that the recognition of a grant should depend on assurance of the compliance of conditions and certainty of receipts and grants relating to specific fixed assets should be deducted from the gross value of assets in arriving at their book value.

4 · 4 As required by IAS 36, impairment losses in respect of assets should be recognised. Impairment arises whenever an asset's carrying amount exceeds its recoverable amount.

4 · 5 In case such assets are taken on lease, then the amounts spent should be accounted on the same basis as mentioned in Paragraph 3.2 and the disclosure requirements mentioned therein will also apply.

5 · Crop Development Expenses

5 · 1 There are generally expenses incurred for development and upkeep of crop. This includes expenses on:

368 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

5 · 2 The total of Crop development expenses at the end of the year should be compared with Net Realisable Value ('NRV'). NRV would generally mean the amount that would be realised in the normal course, in case the standing crops are disposed of on that day. NRV can be determined on the basis of estimated selling price in the ordinary course of business less estimated cost to be incurred in future for bringing the crop to maturity, and the cost necessarily to be incurred to make the sale. In case the NRV is lower than the total of the crop development expenses at the year end, then a suitable provision for the difference between these two figures should be made and disclosed as follows :

5 · 3 The crop development expenses and the provision for diminution will be carried forward to the next year at gross values. A similar exercise would be done at the end of each year. In case the NRV at the end of the second or subsequent year is greater than/or equal to cost in the respective year, then it will be possible to recoup the provision account by transferring it to the credit of Profit and Loss Account only to the extent such a provision was made in the past. The basic principle of valuation at lower of Cost or NRV, would still hold good every year. In case the crop is at such a stage that it is not possible to determine NRV, these expenses should be valued At Cost and a suitable disclosure to that effect should be made in the financial statements. These expenses will be set off against income arising from the sale of crops, either in stages or at the terminal point. 5.4 Considering the peculiar nature of this expenditure and the long production cycle, "Crop Development Expenses" should be separately disclosed between "Fixed Assets and Current

6 · Investments

6 · 1 All investments should be carried at lower of cost and fair value determined either on an individual investment basis or by category of investment, but not on an overall (or global) basis.

6 · 2 In respect of quoted investments, market value generally provides the best evidence of fair value.

6 · 3 Unquoted investments in debt instruments should be valued on a yield to maturity basis, the capitalisation factor being determined for comparable traded investments and with an appropriate discount for lower liquidity.

7 · Inventory Valuation

8 · Revenue Recognition

8 · 1 Revenue should be recognized as per Accounting Standard ('AS') – 9 on "Revenue Recognition" issued by Institute of Chartered Accountants of India, to the extent it is applicable – Revenue should be recognised only if there is a reasonable certainty of collectibility or measurability.

8 · 2 Income would generally arise from the following sources:

9 · Expenses

9 · 1 Expenses other than Crop Development Expenses can be broadly classified as under:

9 · 2 Initial issue expenses

9 · 3 Normal Business Expenses would include:

369 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

370 · ibid.

10 · Returns to Investors

10 · 1 Interim Returns to investors in respect of CIS can be paid only out of the distributable surplus of the CIS. Interim Returns can be paid only in cash and not in kind.

10 · 2 “Distributable surplus” means the profits of the CIS after:

10 · 3 The amount of interim returns distributed to investors should not exceed the distributable surplus.

10 · 4 The balance in the Special Reserve cannot be utilised for any purpose except for distribution to unit holders at the termination of the 371 [collective investment scheme] .

10 · 5 At the end of the tenure of the 372 [collective investment scheme], the surplus of the 373 [collective investment scheme], if any, shall be calculated on the basis of realisable value of all the assets, including land, of the 374 [collective investment scheme]. The surplus of the 375 [collective investment scheme] distributed in cash shall be in proportion to unit capital.

1 · Costs relating to owned land

1 · 1 Land acquired with ownership rights should be accounted as a Fixed asset in accordance with Accounting Standard 10 (AS-10) on "Accounting for Fixed Assets" issued by ICAI.

1 · 2 Cost of such land should not be amortised over the 377 [collective investment scheme] period (refer paragraph 2.3 above).

2 · Livestock development expenses

2 · 1 There are generally expenses incurred on rearing and development of livestock including maintenance and upkeep. This includes expenses on:

371 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

372 · ibid.

373 · ibid.

374 · ibid.

375 · ibid.

376 · ibid.

377 · ibid.

2 · 2 Valuation of livestock development expenses and provision for diminution in value would be in the same manner as in respect of crop development expenses which is discussed in Paragraphs 5.2 and 5.3.

3 · Livestock Trading

3 · 1 Separate quantitative information should be maintained in respect of livestock that is procured for resale without being used in rearing/development activity. An annual trading account should be prepared in respect of Livestock traded during the year (which shall be exclusive of Livestock under rearing/development).

3 · 2 A suitable annual charge should be made in respect of cost of maintenance etc. of the livestock which remained for trading purpose only.

4 · Valuation of by-products

4 · 1 Inventory of by-products at the year end (i.e., manure in case of Goat, eggs in case of Poultry etc.) should be carried at "lower of cost or market value".

4 · 2 Cost of by product shall be calculated on the basis of specific cost incurred on the by-product after the point of separation to make it marketable.

1 · Scheme wise financial statements

1 · 1 Broadly, financial statements would consist of

1 · 2 These should be prepared schemewise

2 · Contents of scheme wise Balance sheet

2 · 1 Asset side of the balance sheet

2 · 2 Liability side of the balance sheet

3 · Contents of scheme wise Revenue account

3 · 1 Income

3 · 2 Expenses and losses:

3 · 3 Increase/decrease in amount of Crop Development Expenses.

4 · Accounting policies

5 · Approval and authorisation

6 · Auditors report

6 · 1 All funds operating CIS shall be required to get their accounts audited in terms of a provision to that effect in their trust deeds. The Auditors' Report shall form a part of the Annual Report. It should accompany the Balance Sheet, Profit and Loss Account and Revenue Account. The auditor shall report to the Board of trustees and not to the unitholders.

6 · 2 The auditor shall state whether: —

6 · 3 The auditor shall give his opinion as to whether:

378 · Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.

379 · ibid.

380 · ibid.

381 · ibid.