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ELIGIBILITY CRITERIA FOR APPOINTMENT OF AMC

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The Applicant has to fulfill the following:

(i) In case the AMC is an existing AMC, it has a sound track record, general reputation and fairness in transactions; 

(ii) The directors of AMC are persons having adequate professional experience in finance and financial services related field and 

▪not found guilty of moral turpitude or 
▪ convicted of any economic offence or  ▪violation of any securities laws; 

(iii) The Key Personnel of AMC:

▪have not been found guilty of moral turpitude or 

▪Convicted of economic offence or 

▪Violation of securities laws or 

▪Worked for any AMC or MF or any intermediary during the period when its registration has been suspended or cancelled at any time by the Board; 

(iv) The BOD of such AMC has at least 50% directors, who are not associate of, or associated in any manner with, the sponsor or any of its subsidiary or the trustees;

(v) The Chairman of AMC is not a trustee of mutual fund; 

(vi) The AMC has a Networth of not less than 50 Crores;

[Networth means aggregate of paid up capital and free reserves of AMC after deducting therefrom Miscellaneous Expenditure not written off or Deferred revenue expenditure, Intangible Assets and Accumulated Losses] 

Provided that an AMC already granted approval under Old guidelines, shall within a period of 3 years from the date of notification of SEBI (MF) (Amendment) Regulations, 2014 increase its Networth to 50 Crores; 

Provided further that an AMC eligible to launch only Infrastructure debt fund schemes, shall have a Networth of not less than 10 crores; 

Provided further that in cases where Board is satisfied that an AMC is taking steps to meet the Networth requirement within the specified time, the AMC may be allowed to launch upto two new schemes per year;

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