You are on page 1of 3

Corrigendum

to

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 onthenumberofcomplaints,thetimeperiodinwhichtheywereresolved,andifnotresolved,for howlongtheyremainunresolved. Therevisedguidelineonmerger/consolidationofschemesis: Themergerorconsolidationoftwoormoreschemeshassofarbeenconsideredasachangeinthe fundamentalattributesoftheschemes.Ithasnowbeenprovidedthatsuchmergerorconsolidation shallnotbeconsideredachangeinthefundamentalattributeofthesurvivingschemeifthefollowing conditionsaremet: a) There is no other change in the Fundamental attributes of the surviving scheme i.e. the schemewhichremainsinexistenceafterthemerger. b) MutualFundsareabletodemonstratethatthecircumstancesmeritmergerorconsolidation ofschemesandtheinterestoftheunitholdersofsurvivingschemeisnotadverselyaffected. 5. Insection5.1.3,KYDrequirementsareupdatedasfollows: KYDRequirements As part of Sebis drive to streamline the distribution process of mutual fund products, AMFI has introducedtheKYDprocesstoverifythecorrectnessoftheinformationprovidedintheregistration documentsandtohaveverificationoftheARNholders.

1|P a g e

Theprocessconsistsofdocumentverificationandbiometricprocess Selfattested copy of the PAN card and specific documents as proof of address to be submittedalongwithapplicationformattheCAMSPoS Biometricprocessconsistsoftakingtheimpressionoftheindexfingeroftherighthandof theARNholder.ThiswillbedoneatthePoSatthetimesubmissionofdocuments In case of nonindividual distributors, biometric process will be conducted on specified authorizedpersons AnacknowledgementconfirmingthecompletionofKYDprocessisreceivedfromtheCAMS PoS A photocopy of the acknowledgement has to be sent to all the AMCs with whom the distributorisempanelled

ThenewrulesisapplicabletonewregistrationsandrenewalshavecometoeffectfromSeptember1, 2010.AfterpassingtheexaminationandcompletingKYDrequirements,thenextstageistoregister with AMFI. On registration, AMFI allots an AMFI Registration Number (ARN). Individuals from the exemptedcategorydescribedabovecanobtaintheARNwithoutpassingtheCertifyingExamination, providedtheyhaveattendedtheprescribedrefreshercourse. 6. Insection6.1.6,therevisedrequirementwrtlimitsonfeesforFundofFundsare As 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 accountopeningdocuments,PAN,KYC,PoA(ifapplicable),specimensignaturebyNovember15, 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:

2|P a g e

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. NonResidentIndians 3. 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

3|P a g e