The Securities and Exchange Board of India (SEBI) has decided to improve the net worth criteria and track record requirements for entities managing collective investment schemes. The regulator has also approved changes to listing responsibilities and disclosure regulations to simplify the procedure for transmission of securities. It also agreed to amend rules to allow SEBI-registered custodians to provide custodial services in silver-related instruments held by silver ETFs of mutual funds.

The regulator will also restrict a Collective Investment Management Company (CIMC) and its group/associates/shareholders’ shareholding in a scheme at 10 per cent or representation on the board of another CIMC to avoid conflict of interest. SEBI said that the net worth criteria would be improved, and a track record in a relevant field for registration as a CIMC would be put in place. Also, there would be a “mandatory requirement of a minimum number of investors, maximum holding of a single investor and minimum subscription amount at CIS level,” SEBI added.

It said there would be a rationalisation of fees and expenses to be charged to the scheme and a reduction of timelines for the project, allotment of units and refund of money to investors. The changes have been submitted to “support the regulatory framework for CIS in line with Mutual Fund regulations to remove regulatory arbitrage,” the release said.