CIS PROJECT MANJARI 1
PROJECT ON
COLLECTIVE INVESTMENT SCHEMES
BY
MANJARI SIROHI
LL.M 2014-15
AMITY UNIVERSITY HARYANA
SUBJECT
LAW ON SECURITIES AND FINANCIAL MARKETS
TAUGHT BY
PROF.MONICA YADAV
INDEX
INTRODUCTION
HISTORY
SEBI (COLLECTIVE INVESTMENT SCHEME) REGULATIONS 1999
AMENDMENTS
CASE STUDY
CONCLUSION
INTRODUCTION
Collective Investment Scheme (CIS)
A Collective Investment Scheme (CIS), as its name suggests, is an investment scheme wherein several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money. The term has broader connotations and includes even mutual funds. For instance, in UK, the unit trust scheme is a collective investment scheme. However, in India, as in US, the definition of CIS excludes mutual funds or unit trust schemes etc and is given a strict definition in Section 11AA of the SEBI Act, 1992. CISs are regulated by the securities market regulator – SEBI - under SEBI (Collective Investment Scheme) Regulations, 1999.
According to Section 11AA of the SEBI Act, CIS is any scheme or arrangement, which satisfies the following conditions: i the contributions, or payments made by the investors, by whatever name called, are pooled and utilized solely for the purposes of the scheme or arrangement; ii the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement; iii the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; iv the investors do not have day to day control over the management and operation of the scheme or arrangement.
Through the SEBI ordinance dated 18th July 2013, any pooling of funds
COLLECTIVE INVESTMENT SCHEMES
BY
MANJARI SIROHI
LL.M 2014-15
AMITY UNIVERSITY HARYANA
SUBJECT
LAW ON SECURITIES AND FINANCIAL MARKETS
TAUGHT BY
PROF.MONICA YADAV
INDEX
INTRODUCTION
HISTORY
SEBI (COLLECTIVE INVESTMENT SCHEME) REGULATIONS 1999
AMENDMENTS
CASE STUDY
CONCLUSION
INTRODUCTION
Collective Investment Scheme (CIS)
A Collective Investment Scheme (CIS), as its name suggests, is an investment scheme wherein several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money. The term has broader connotations and includes even mutual funds. For instance, in UK, the unit trust scheme is a collective investment scheme. However, in India, as in US, the definition of CIS excludes mutual funds or unit trust schemes etc and is given a strict definition in Section 11AA of the SEBI Act, 1992. CISs are regulated by the securities market regulator – SEBI - under SEBI (Collective Investment Scheme) Regulations, 1999.
According to Section 11AA of the SEBI Act, CIS is any scheme or arrangement, which satisfies the following conditions: i the contributions, or payments made by the investors, by whatever name called, are pooled and utilized solely for the purposes of the scheme or arrangement; ii the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement; iii the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; iv the investors do not have day to day control over the management and operation of the scheme or arrangement.
Through the SEBI ordinance dated 18th July 2013, any pooling of funds