The following arrangements are not classified as Collective Investment Schemes:

• Schemes offered by co-operative societies registered under relevant state laws.
• Deposit schemes run by Non-Banking Financial Companies (NBFCs).
• Insurance plans governed by the Insurance Act.
• Schemes under the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
• Company deposits under section 58A of the Companies Act, 1956.
• Schemes of Nidhis or mutual benefit societies under section 620A of the Companies Act, 1956.
• Chit businesses as defined by the Chit Fund Act, 1982.
• Contributions made to mutual fund schemes.

A Collective Investment Management Company (CIMC) is a company incorporated under the Companies Act, 1956, and registered with SEBI as per SEBI (Collective Investment Schemes) Regulations, 1999. Its primary purpose is to organize, operate, and manage Collective Investment Schemes.

These are schemes that were operational at the time CIS Regulations were enforced on October 15, 1999.

No, an existing CIS cannot raise funds or launch new schemes until it secures a certificate of registration from SEBI. Provisional registration or credit rating does not allow fund mobilization without SEBI’s formal approval.

A registered CIMC can raise funds by launching credit-rated schemes that have been appraised by an agency. The schemes must be approved by the Trustee and contain necessary disclosures for informed decision-making. The offer document must be filed with SEBI, and if SEBI suggests no changes within 21 days, the CIMC may issue the offer to the public.

Yes, unit certificates must be listed on stock exchanges specified in the offer document.

Yes, investors should receive:

• The Balance Sheet, Profit and Loss Account, and a summary of the annual appraisal report within two months of the financial year’s end.
• The scheme’s annual report (or an abridged version) published in a national newspaper within two months after finalizing accounts.
• Un-audited quarterly financial results published in a national newspaper within a month of each quarter’s end.

No, SEBI’s acceptance of an offer document does not imply approval or assurance of the scheme’s financial soundness. The responsibility for accurate disclosures lies solely with the CIMC, in compliance with SEBI regulations.

A CIS must be wound up if it:

• Does not apply for registration.
• Is unwilling or ineligible to obtain provisional registration.
• Fails to meet regulatory conditions after obtaining provisional registration.

The scheme must issue an information memorandum to investors, detailing the scheme’s financial status, the amount payable, and the calculation method. The memorandum, signed by all directors, should clearly state that investors must express a desire to continue within a month. If fewer than 25% of investors consent, the scheme will be wound up, and payments made within three months.

Investors may approach the CIS directly for grievances. If unsatisfied, they can escalate the issue to SEBI or seek remedies through district consumer forums for service deficiencies. In cases of bounced cheques, investors can file complaints under section 138 of the Negotiable Instruments Act. For deposit-like investments, the provisions of section 58A of the Companies Act apply.

No, SEBI does not guarantee or undertake the repayment of funds to investors.

Investors should first contact the CIS. If the issue is unresolved, they may write to SEBI. Additionally, district consumer forums can address service deficiencies. For bounced cheques, legal action can be taken under the Negotiable Instruments Act.