ncfm nism va corrigendum

8/2/2019 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

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