Mutual Fund

Appointment of fund manager for MF schemes investing in commodities and overseas securities

To enhance ease of doing business, SEBI, vide circular dated April 30, 2024, modified certain provisions of the Master Circular for MFs dated May 19, 2023. The key modifications are as follows:

1. for commodity-based funds, appointment of a dedicated fund manager is optional;
2. the requirement to appoint a dedicated fund manager for making the prescribed overseas investments is optional; and
3. in case where a person is appointed as a fund manager, he should have adequate expertise and experience to manage investments in commodities market or in overseas securities, as the case may be; and the board of the asset management companies will be responsible to ensure compliance and reporting regarding the same to the trustees, on a periodic basis.

Fund manager for MF schemes investing in commodities and overseas securities

SEBI, vide circular dated April 30, 2024, amended the master circular for MFs dated May 19, 2023. Some of the key changes are as follows:

1. the requirement to appoint a dedicated fund manager for making the prescribed overseas investments by schemes is optional (earlier this was not optional); and
2. in case where a person is appointed as a fund manager for commodity-based funds and for making prescribed overseas investment, the board of the Asset Management Companies will be responsible for: (a) ensuring that the person appointed should have adequate expertise and experience to manage investments in commodities market, and (b) reporting the same to the trustees, on a periodic basis.

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