Introduction to Collective Investment Fund
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 of money received by an investor from 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; that arrangement or scheme is called a collective investment scheme.
Control over the management and operation of such scheme or arrangement is not in the hands 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.
What is not a Collective Investment Scheme
The following schemes 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 like subscription to a mutual fund;
What is a Collective Investment Management Company?
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 on 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 activity other than managing the collective investment scheme
Cannot act as a trustee of any collective investment scheme
Cannot launch any collective investment scheme for the purpose of investing in securities
Cannot invest in any collective investment scheme floated by it.
Brand Name:- Copzo Ventures Pvt Ltd
Address:- G 10, Sector 63, Noida, India, 201301,
Email:- reach@corpzo.com,
Phone:- +919999139391,
Web Address:- https://www.corpzo.com
Social Media Platform
https://twitter.com/corpzoindia
https://www.facebook.com/corpzo/
https://www.instagram.com/corpzo/
