A Collective Investment Scheme (CIS), is an investment scheme in which several individuals come together to pool their money to invest in a particular asset(s) with the motive to share the returns derived from the said investment in accordance with the agreement signed between them prior to pooling the money.
Amount or money received by the investor by a company which utilises these pooled contributions under a scheme or arrangement with a motive of receiving profits, income, property & is managed on behalf of the investors those arrangement or scheme is called as a collective investment scheme.
Control over the management and operation of such scheme or arrangement is not in the hand of investors.
As per SEBI ordinance 2014, any unregistered scheme or arrangement which pools Funds under this, involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme.
The following scheme are not to be treated as a collective investment scheme:
➲ Any scheme or arrangement made or offered by a co-operative society or a society registered under society act;
➲ Any scheme or arrangement under which any deposits are accepted by an NBFC
➲ Any scheme or arrangement, being a contract of insurance which falls under the provisions of the Insurance Act;
➲ Any scheme or arrangement providing for a Pension Scheme or the Insurance Scheme framed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952
➲ Any scheme or arrangement under which deposits are accepted under section 73 to 76 of the Companies Act, 2013;
➲ Any scheme or arrangement falling within the meaning of Chit business as defined in clause (d) of section 2of the Chit Fund Act, 1982;
➲ Any scheme or arrangement under which contributions made are in the nature of subscription to a mutual fund;
➲ Applicant must be a registered company as per the Companies Act, 2013 or previously applicable law
➲ The company main objective mentioned in its MOA must specify the managing of a collective investment scheme
➲ The applicant has a net worth of not less than rupees 3 crores at the time of making the application which shall be increased to rupees five crores within a period of three years from the date of the date of registration
➲ SEBI grants such certificate to only fit and proper person.
➲ There should be proper and adequate infrastructure to enable it to operate a collective investment scheme in accordance with the provision of these regulations;
➲ The directors and the key personnel of the applicant should be persons of honesty and integrity and shall possess having adequate professional experience in the related field
➲ The Directors and KMP of the applicant shall not have been convicted for an offence involving moral turpitude or for any economic offence or for the violation of any securities laws;
➲ Half of the board member shall be consisting of the persons who are independent and are not directly or indirectly associated with the persons who have control over the Collective Investment Management Company;
➲ No person who has been directly or indirectly connected with the applicant should have been refused registration in the past, by the Board under the Act.
IT is a company incorporated under the provisions of the Companies Act, 2013 and registered with SEBI under the SEBI (Collective Investment Schemes) Regulations, 1999, whose object is to organise, operate and manage a Collective Investment Scheme.
A person (Company) which has obtained a certificate of registration in accordance with these regulations can carry on or sponsor or launch a collective investment scheme.
Application to the Board for the grant of registration shall be made in Form A by any person proposing to carry any activity as a Collective Investment Management Company on or after the commencement of these regulations.
Business Activities restricted for a collective investment Management Company:
The collective investment Management Company-
➲ Cannot perform any other activity other than managing the collective investment scheme
➲ Cannot charge any fees on its investment in that collective investment scheme.
➲ There has to be a minimum capital requirement (that is 3 crore initially which will grow to 5 crores in next 3 year from incorporation)
➲ It has prescribed certain corporate governance in the company.
➲ Independent director should be 50% of the total numbers of directors.
➲ There should be a trust
➲ The trustee and the directors of the applicant should be fit and proper person
➲ The type if the investment that they can make that has been prescribed along with a restriction on activities of a collective investment management company.
A Collective Investment Management Business is defined as a body formed pursuant to the company law of 1956 and further enlisting with SEBI pursuant to SEBI Regulations of 1999. The principal purpose of the body is to compose, run and deal with a collective investment scheme.
A Fund Manager, a licensed and trained person concerned with management choices and decisions on mutual investment schemes. This person also provides trade reconciliation, appraisal and the evaluation unit of the strategy or action plan.
An person holding collective investment scheme property in trust is regarded as a trustee to support the unit holder. A trustee operates according to the appropriate rules and preserves the rewards only as the standards and guidelines ensure continuity. It is important that the CIS Regulations of 1999 set up a joint investment scheme as a trust. In this respect, the trust document will be a deed properly enlisted under the arrangements defined in compliance with the Indian Registry Act of 1908. For the trustees named in the instrument, a joint fund management firm begins this. Furthermore, such an entity or corporation may elect a trustee to represent its financial professionals and can take advantage of the mutual investment scheme.
For appointed trustees, the Collective Investment Management Firm shall supply the Board with the information stated in form C.
The shareholder is the individuals who contribute money in the mutual investment portfolio or are generally regarded as the shareholder. These owners must enjoy rights to the benefits of the plans and the associated remuneration or revenue provided by the contract or scheme.
➲ A Collective Investment Management Company registered with SEBI is eligible to raise funds from the public by launching schemes.
➲ A Collective Investment scheme has to mandatorily get a credit rating and shall also be appraised by an appraising agency.
➲ Trustees must approve such schemes and disclosures must be annexed, as provided in the Regulations, which would enable the investors to make an informed decision.
➲ The company must submit a copy of the offer document of the scheme with SEBI.
➲ If there is no suggestion of modifications is made by SEBI within 21 days from the date of filing of the offer document then the Collective Investment Management Company may issue the offer document to the public for the purpose of raising funds.
We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.
Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.
Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.
On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all businesses accepting, processing, storing or transmitting credit card information maintain a safe environment.Read More
A company which has the object of cultivating the habit of thrift & savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Govt.Read More
Registration of NBFC's may be cancelled by the RBI for not conducting business in the manner specified in the respective statutes or due to any non-compliance. However, in certain circumstances, it is possible to apply for the revival of the NBFC whose liRead More
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 of India, the main operations of NBFC include loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance or chit-fund, but they do not incluRead More
An authorized company that is authorized to purchased foreign exchange from non-residents visiting India & residents & to sell foreign exchange for private & business travel purposes only is Known as Full fledged money changer (FFMC).Read More
Payment services operated under financial regulation and performed from or via mobile is known as Mobile payment wallet. Mobile payment wallet also referred to as mobile money, mobile money transfer and mobile wallet.Read More
An asset Reconstruction Company is a Company engaged in the business of buying bad loan from bank. These are specialized financial institutions that buys the bad loan, Non Performing Assets (NPAs) from banks & financial institution so that to clean up theRead More
The firms incorporated under the Companies Act 2013 as the public or private limited company having objective of financial activity are known as NBFC or Non-Banking Financial Companies.Read More
An autonomous group of people belonging to the same class willingly comes together to strive to be common economic, social and cultural objectives and criteria through a business that is jointly owned and democratically controlled by such citizens.Read More
An Altenative Investment Fund is a privately pooled investment vehicle that collects funds from investors and invest these funds in accordance with a defined investment policy for the benefits of its investors is known as Alternative Investment funds.Read More
A Collective Investment Scheme (CIS), is an investment scheme in which several individuals come together to pool their money to invest in a particular asset(s) with the motive to share the returns derived from the said investment in accordance with the agRead More
The SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) also apply to AIFs in the IFSC. The "SEBI" published Operating Guidelines for Alternative Investment Funds in International Financial Services Centres on November 26, 2018 "Read More
An establishment in form of trust or institutions that records and maintains a complete record of transactions of investors for the benefit or convenience of mutual funds houses or listed entities are called as share transfer agents.Read More
Merchant banker is a company and is combination of consultancy and banking services. Activities of merchant banker in India are regulated by SEBI (merchant banker) rule 1992.Read More
Service providers through which e-commerce merchants can process their payment transactions are known as a payment aggregator, they are also known as merchant aggregator.Read More
A service providing entities which plays role of intermediate between banks and websites facilitating the communication of transaction information are known as payment gateway.Read More
Organization which is registered under companies act 2013 or 1956 and which facilitate financing activity such as loan, savings, and insurance to the needy people or to those who are incapable of getting loan from banks and other financial institutions dRead More
An Infrastructure Investment Trust (InvIT) is a collective investment scheme, similar to a mutual fund, that allows individual and institutional investors to invest directly in infrastructure projects in exchange for a small percentage of the income as aRead More
Uniquely repurpose strategic core competencies with progressive content. Assertively transition ethical imperatives and collaborative manufactured products.Write About Us
© 2023 Corpzo Ventures Private Limited.