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

An AMC wants to launch a new open-ended scheme. Which sequence best reflects the regulatory process under SEBI regulations?

The trustees approve the scheme and the AMC files the draft offer document with SEBI. Units can be offered only after SEBI's observations are addressed. AMFI approval alone is insufficient, and launching first and filing later is not permitted.

  1. ALaunch the scheme and file the offer document within six months
  2. BFile the draft offer document with SEBI through the AMC after trustee approval, and launch only after SEBI observations are addressedCorrect
  3. CObtain AMFI approval alone and then invite subscriptions
  4. DGet the RTA to register the scheme with the stock exchange before filing anything

Explanation

Trustees approve the scheme and the AMC files the draft offer document with SEBI. The scheme can be launched after SEBI's observations are incorporated. AMFI approval alone is not enough, and launching before filing breaches the regulations.

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