SEBI vide circular No. SEBI/HO/IMD/DF2/CIR/P/2019/155 dated 16thDecember, 2019 it has been decided that,
AMCs may provide management and advisory services in terms of Regulation 24(b) of MF Regulations to FPIs falling under the following categories of FPIs as specified in FPI Regulations:
- Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled or at least 75% directly or indirectly owned by such Government and Government related investor(s);
- Appropriately regulated entities such as pension funds, insurance or reinsurance entities, banks and mutual funds;
- Appropriately regulated FPIs wherein the above hold more than 50% of shares/ units.
[Regulation 24(b) of MF Regulations says that the asset management company shall not undertake any business activities other than in the nature of management and advisory services provided to pooled assets including offshore funds, insurance funds, pension funds, provident funds if any of such activities are not in conflict with the activities of the mutual fund.]
Further, for agreements entered into by the AMCs on or before the date of this Circular, to provide management and advisory services to such FPIs which are not falling under the above categories, the AMCs may continue to provide the services, for the period as mentioned in the agreement or one year from the date of this Circular, whichever is earlier.