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CS Executive · Capital Market and Securities Laws · Collective Investment Schemes

A registered mutual fund scheme collects Rs 50 crore but fails to invest it in the manner or within the period specified in the regulations. Which Section 15D provision applies, and what is the minimum penalty?

Clause (f) of Section 15D applies to failure to invest collected money in the manner or within the period specified in the regulations. The penalty is not less than one lakh rupees, extending to one lakh per day, capped at one crore rupees.

  1. AClause (f); not less than one lakh rupeesCorrect
  2. BClause (e); not less than one lakh rupees
  3. CClause (f); not less than ten lakh rupees
  4. DClause (b); not less than one crore rupees

Explanation

Section 15D(f) covers failure to invest money collected in the manner or period specified in regulations. The penalty is not less than one lakh rupees, may extend to one lakh rupees per day, and is capped at one crore rupees. Clause (e) concerns refunds.

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