Section 9A(4)

Section 9A(4) — the law in short

What the courts have decided on section 9A(4), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Statutory position — section 9A(4) and rule 10V: who counts as an eligible fund manager, and the minimum fee the fund must pay him CBDT Circulars & InstructionsCuts both ways
  I am setting up an India-based manager for an offshore fund. What does the manager himself have to satisfy, and is there a floor on the fee the fund must pay him?
  Section 9A(4) defines the eligible fund manager as a person engaged in the activity of fund management who satisfies four conditions: he is not an employee of the fund or a connected person of the fund; he is registered as a fund manager or an investment advisor in accordance with the specified regulations; he is acting in the ordinary course of his business as a fund manager; and he, along with his connected persons, is not entitled, directly or indirectly, to more than twenty per cent of the profits accruing or arising to the fund from the transactions carried out by the fund through him. Separately, condition (m) of section 9A(3) requires the fund's remuneration to him to be not less than a prescribed amount, and rule 10V(12) prescribes that amount.
• Statutory position — section 9A(8A): the conditions can be switched off for a fund manager located in an IFSC, if he commenced operations by 31 March 2030 CBDT Circulars & InstructionsCuts both ways
  Our fund manager is being set up in GIFT City rather than in Mumbai. Does that make any difference to the section 9A conditions?
  It can, but only through a notification. Section 9A(8A) empowers the Central Government, by notification in the Official Gazette, to specify that any one or more of the conditions in clauses (a) to (m) of section 9A(3) or clauses (a) to (d) of section 9A(4) shall not apply, or shall apply with such modifications as the notification specifies, in the case of an eligible investment fund and its eligible fund manager where the manager is located in an International Financial Services Centre and has commenced its operations on or before 31 March 2030. The relaxation is not automatic: without a notification covering the condition in question, every condition continues to apply in full.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.