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CS Executive · Capital Market and Securities Laws · Securities Market Intermediaries

Kaveri Capital sponsors a collective investment scheme including a mutual fund and has no SEBI certificate. Which statement matches Section 12(1B) of the SEBI Act, 1992?

No person may sponsor or carry on a venture capital fund or collective investment scheme, including a mutual fund, without a SEBI certificate of registration. Section 12(1B) states this without conditions on investor numbers or asset type, so Kaveri Capital must obtain registration.

  1. ARegistration is needed only if the scheme invests in equity shares
  2. BNo person shall sponsor or carry on a venture capital fund or collective investment scheme including mutual funds unless registered with SEBICorrect
  3. CRegistration is needed only when the scheme has more than 100 investors
  4. DRegistration with the stock exchange is enough for such sponsors

Explanation

Section 12(1B) prohibits any person from sponsoring or carrying on venture capital funds or collective investment schemes, including mutual funds, without a SEBI certificate of registration. The text sets no investor-number or asset-type condition and does not accept exchange registration.

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