The S A Dave committee, set up by the Securities & Exchange Board of India (Sebi), is yet finalise its report. According to sources, the committee met yesterday to discuss the accounting principles for collective investment schemes. However, the sub-group set up under Rajendra Chitale has not submitted its recommendations to the committee.
"The committee discussed the future of the existing companies already operating such schemes. These companies will be given time to carry out restructuring so that they comply with Sebi regulations for such schemes as finalised by the committee," a panel member said. The committee also discussed the issue of registration of such companies and modalities involved in ensuring it. "All existing companies will be allowed to raise money from the public after they ensure compliance. They would also have to get their instruments rated from a recognised credit rating agency," the source added.
A detailed registration procedure will be worked out for all existing schemes prior to the enactment of the regulations. "All existing companies have to comply with the format worked out by the committee for registrations. Regulations will be applicable to only new companies," the source said.
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The source also said that asset management companies have to be set up for the management of the scheme, and trustees have to monitor their performance.
The committee had said that an issue will be termed a collective investment scheme if the scheme has mobilised funds from the public, if the promoter and the management are not the same, if the venture is profit-making, and if the profit is distributed to the investors.