NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
As per the SEBI regulations, which of the following statements about the role of the trustees of a mutual fund is correct?
Trustees hold the mutual fund's property in trust for unitholders and oversee the asset management company's activities and compliance. Investment management is done by the AMC, safekeeping by the custodian, and sale of units by distributors.
- AThey manage the day-to-day investment decisions of the schemes
- BThey hold the property of the mutual fund in trust for unitholders and oversee the AMCCorrect
- CThey act as custodian of the securities of the schemes
- DThey distribute units to investors and earn commission
Explanation
Trustees hold the fund's property for the benefit of unitholders and supervise the AMC's compliance. Investment decisions are made by the AMC, securities are held by the custodian, and distribution is done by distributors.
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