SEBI guidelines of mutual funds provide that the sponsor of mutual fund. If the trust deed so authorise the trustee shall appoint an asset management company incorporation. It can be approved by SEBI. To manage the affairs of the mutual fund and conduct. They can operate with the scheme of such fund in a registration company. The assignation (AMC) of asset management company can be eliminated by the majority of trustees. Which has seventy percent of the unit holder of the scheme. Where any change in the assignment of the (AMC) asset management company. It is subject to the prior approval of the (SEBI). The asset management company (AMC) describes a company registered and formed under the companies act 1956. It is approved by securities and exchange board of India (SEBI).
The directive and objects of association of asset management company are to be approved by SEBI. The main product of setting up of an AMC is to manage the asset of the mutual funds. It can also carry on such financial and consultancy services for registration.Which do not conflict with the fund management activity are only secondary and incidental. As per guidelines, AMC shall be authorised for business by (SEBI ). The directive and objects of the association would require vetting by (SEBI). It may not be possible to await a company for registration is set up with a paid capital of Rs. five crores to carry on only incidental activities. Any assurance has without of its receiving an approval from SEBI to act also an AMC for a mutual fund.
Incorporation of securities intermediaries
A company which needs to engage in the business of portfolio manager, banker to an issue,merchant banker, stork-broking, trustee or trust deed, register to an issue, underwriters, share transfer agent,, investment adviser for company incorporation. Such other securities intermediary are required to register itself with the securities. In terms of section (12) of SEBI exchange board of India is act with. The various regulations notified there under the registration. Before it can start dealing in securities or engaging itself in business.
But unlike asset management company (AMC). Where such company is not required to get their directive and objects of the association. It is approved by SEBI. Before seeking registration from the registrar of companies. They are only required to submit a copy of their directive. With the objects of association while seeking registration with SEBI.
Purpose for which a company can be incorporated
A company can be incorporated for a lawful purpose only. Every purpose is lawful unless it is forbidden by law or its contrary to its public policy. Subject to the purpose is being lawful. There is no limit on the purposes. An incorporation company can be formed to registration. A company proposed to be formed for an illegal purpose. Under illegal any law of the country cannot be proper registration . Where the purpose is not lawful. Where any of the objects is illegal. The registrar may refuse to register. If it is registered the certificate of registration in Coimbatore is not conclusive. For the purpose of legitimating the unlawful part of the business.