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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework

A mutual fund's AMC wants to launch a new scheme. Which sequence correctly reflects the regulatory requirement for launching it under SEBI rules?

A new scheme can be launched only after the draft offer document, approved by the trustees, is filed with SEBI and SEBI's observations are addressed. Launching first, relying on AMFI alone, or seeking existing unitholder approval is not what the regulations require.

  1. ALaunch the scheme first and file the offer document with SEBI within a year
  2. BFile the draft offer document with SEBI through the trustees and launch after SEBI's observations are addressedCorrect
  3. CObtain AMFI approval alone and launch without SEBI involvement
  4. DObtain unitholder approval of existing schemes before launch

Explanation

A new scheme requires the draft offer document to be filed with SEBI, with trustee approval, before launch. SEBI's observations must be incorporated. AMFI approval alone is insufficient and existing unitholders do not vote on new schemes.

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