NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
As per SEBI regulations, which of the following is a feature of the role of mutual fund trustees?
Trustees supervise the AMC, ensure it works in the interest of unitholders and complies with regulations, and submit periodic reports to SEBI. They do not pick stocks, act as registrar, or guarantee returns to investors.
- AThey are responsible for stock selection in schemes
- BThey ensure the AMC acts in the interest of unitholders and file periodic reports with SEBICorrect
- CThey act as the registrar for unit issuance
- DThey guarantee a minimum return to unitholders
Explanation
Trustees hold the fund property in trust for unitholders and oversee the AMC, ensuring it complies with regulations and acts in unitholders' interest. They report to SEBI periodically. Stock selection belongs to the AMC and returns cannot be guaranteed.
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