Section 70: Transactions not regarded as transfer

Section 70: Transactions not regarded as transfer · Complied AI

(2)

In sub-section (1), the definitions of the expressions mentioned in column C of the Table below shall apply to the corresponding clauses of the said sub-section mentioned in column B of the said Table. Table Sl. No. Clause Definitions A B C 1. (i) The expressions––

(a)

“banking company” shall have the same meaning as assigned to it in section 5(c) of the Banking Regulation Act, 1949 (10 of 1949);

(b)

“banking institution” shall have the same meaning as assigned to it in section 45(15) of the Banking Regulation Act, 1949 (10 of 1949). 2. (n) and “business reorganisation”, “converted banking (o) company”, “predecessor co-operative bank” and “successor co-operative bank” shall have the meanings respectively assigned to them in section 65. 3. (r) (a) “derivative” shall have the same meaning as assigned to it in section 2(ac) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(b)

“securities” shall have the same meaning as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). 4. (s) “Government Security” shall have the same meaning as assigned to it in section 2(b) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). 5. (t) and (a) “original fund” means—

(u)

(A)

a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions:— (i) the fund is not a person resident in India;

(ii)

the fund is a resident of a country or a specified territory with which an agreement referred to in section 159(1) or (2) has been entered into; or is established or incorporated or registered in a country or a specified territory as notified by the Central Government;

(iii)

the fund and its activities are subject to applicable investor protection regulations in the country or specified territory where it is established or incorporated or is a resident; and (iv) fulfils other conditions as prescribed; A B C (B) an investment vehicle, in which Abu Dhabi Investment Authority is the direct or indirect sole shareholder or unit holder or beneficiary or interest holder and such investment vehicle is wholly owned and controlled, directly or indirectly, by the Abu Dhabi Investment Authority or the Government of Abu Dhabi; or (C) a fund notified by the Central Government subject to conditions as specified;

(b)

“relocation” means transfer of assets of the original fund, or of its wholly owned special purpose vehicle, to a resultant fund on or before the 31st March, 2025, where consideration for such transfer is discharged in the form of share or unit or interest in the resulting fund to— (i) a shareholder or unit holder or interest holder of the original fund, in the same proportion in which the share or unit or interest was held by such shareholder or unit holder or interest holder in such original fund, in lieu of their shares or units or interests in the original fund; or (ii) the original fund, in the same proportion as referred to in sub-clause (i), in respect of which the share or unit or interest is not issued by resultant fund to its shareholder or unit holder or interest holder;

(c)

“resultant fund” means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership, which is located in an International Financial Services Centre as referred to in section 147 and has been granted— (i) a certificate of registration as a Category I or Category II or Category III Alternative Investment Fund, and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, (50 of 2019); or (ii) a certificate as a retail scheme or an Exchange Traded Fund as per Schedule VI (Note 1) and which fulfils the conditions specified in Schedule VI (Table: Sl. No. 1). 6. (y) “Electronic Gold Receipt” and “Vault Manager” shall have the same meanings as respectively assigned to them in regulation 2(1)(h) and (l) of the Securities and Exchange Board of India (Vault Managers) Regulations, 2021 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). A B C 7. (zc) “University” means a University established or incorporated by or under a Central Act or State Act or Provincial Act and includes an institution declared under section 3 of the University Grants Commission Act, (3 of 1956), to be a University for the purposes of that Act. 8. (ze) “private company” and “unlisted public company” shall have the same meanings as respectively assigned to them in the Limited Liability Partnership Act, 2008 (6 of 2009). 9. (zi) “special purpose vehicle” shall have the meaning assigned to it in Schedule V (Note 2). 10. (zj) (a) “consolidated scheme” means the scheme with which the consolidating scheme merges or which is formed as a result of such merger;

(b)

“consolidating scheme” means the scheme of a mutual fund which merges under the process of consolidation of the schemes of mutual fund as per the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(c)

“equity oriented fund” means a fund— (i) where the investible funds are invested by way of equity shares in domestic companies to the extent of more than 65% of the total proceeds of such fund, for which the percentage of equity shareholding shall be computed with reference to the annual average of the monthly averages of the opening and closing figures; and (ii) which has been set up under a scheme of Mutual Fund specified in Schedule VII (Table: Sl. No. 20 or 21);

(d)

“mutual fund” means a mutual fund specified in Schedule VII (Table: Sl. No. 20 or 21). 11. (zk) (a) “consolidating plan” means the plan within a scheme of a mutual fund which merges under the process of consolidation of the plans within a scheme of mutual fund as per the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(b)

“consolidated plan” means the plan with which the consolidating plan merges or which is formed as a result of such merger;

(c)

“mutual fund” means a mutual fund specified in Schedule VII (Table: Sl. No. 20 or 21); and 12. (zl) “joint venture” means a business entity, as notified by the Central Government.