- Mutual funds may enter into underwriting agreement after obtaining a certificate of registration in terms of the Securities and Exchange Board of India (Underwriters) Rules and Securities and Exchange Board of India (Underwriters) Regulations, 1993 authorising it to carry on activities as underwriters.

Explanation :- (1) For the purpose of these regulations, the underwriting obligation will be deemed as if investments are made in such securities.

(2)

The capital adequacy norms for the purpose of underwriting shall be the net asset of the scheme :

Provided that the underwriting obligation of a mutual fund shall not at any time exceed the total net asset value of the scheme.