RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
Nuvama Wealth Management Ltd. (formerly Edelweiss Securities arm) has received regulatory clearance from the Securities and Exchange Board of India (SEBI) to enter the mutual fund (MF) industry as a sponsor.
SEBI Norms: Eligibility of a Mutual Fund Sponsor
The sponsor is the promoter who sets up the mutual fund and AMC. According to SEBI (Mutual Funds) Regulations, 1996, the following conditions must be fulfilled:
| Criteria | Key Requirements |
|---|---|
| Track Record & Reputation | • Minimum 5 years of business track record in financial services. • Positive net worth in each of the last 5 years. • Net worth > ₹50 crore in the immediately preceding year. • Profitability in at least 3 out of 5 years. |
| Fit & Proper Criteria | • Must satisfy SEBI’s “fit and proper person” norms. • No record of fraud, conviction, or regulatory violations. |
| Shareholding & Contribution | • Sponsor must contribute ≥ 40% of AMC’s net worth. • Minimum AMC net worth: ₹50 crore (as per latest SEBI amendments). • Contribution ensures “skin in the game”. |
| Professional Setup | • AMC & Trustee Co. must have ≥ 50% independent directors/trustees. • No conflict of interest with the sponsor. |
| Regulatory Approval | • SEBI conducts due diligence on financial strength, governance, compliance history, and risk management before granting approval. |
