Understand the Registration of Mutual Fund with SEBI

Given that any individual holding 40% or a greater amount of the net worth of an asset management company will be considered to be a sponsor and will be needed to satisfy the qualification criteria determined in these guidelines-

• The sponsor or may it be the directors or the principal head proposed to be employed by the mutual fund should not be found at legitimate fault for extortion or fraud or neither charged for or convicted for an offense including moral turpitude or guilty of any economic offense;
• Trustees should be appointed for the mutual fund in compliance with the provisions of the regulations and should act as trustees;
• Asset Management Company should be framed to manage and operate various schemes of the mutual fund, in compliance with the provisions of the regulations;
• Custodians should be appointed to keep charge of the gold and gold related instrument, securities or other numerous assets held as far as these guidelines are concerned, and offer other related custodial assistance as might be approved by the trustees.

After receiving all the required data SEBI might register the mutual fund and grant registration certificate in Form B but only after the INR 25 lakhs is paid as a registration fee.

Every year before 15^th April, an annual fee as determined under for each financial year from the year following the time of registration should be made by a mutual fund.

Average Assets under Management (AAUM) as on 31 March     Annual Fee	Annual Fee
Up to INR 10,000 crore	0.0015% of the AAUM
Above INR 10,000 crore	0.0010% of the part of AAUM in overabundance of INR 10,000 crore

Dependent upon at least INR 2,50,000 and a maximum of INR 1,00,00,000.

Unfulfillment of the required criteria by sponsor, might lead to the rejection of application by SEBI informing the same to the applicant.