NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund
In the Indian mutual fund structure, which entity is responsible for ensuring that the AMC manages the schemes in accordance with the trust deed and SEBI regulations on behalf of unitholders?
The trustees are responsible for overseeing the AMC. They hold the fund's property for unitholders and ensure schemes are run in line with the trust deed and SEBI regulations, whereas the registrar, custodian and auditor perform record-keeping, safekeeping and audit roles respectively.
- AThe trusteesCorrect
- BThe registrar and transfer agent
- CThe custodian
- DThe fund's auditor
Explanation
The trustees hold the trust property for unitholders' benefit and oversee the AMC's compliance with the trust deed and SEBI rules. The RTA handles unit records, the custodian safekeeps securities, and the auditor audits accounts, but none are primarily the oversight body.
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