CS Executive · Capital Market and Securities Laws · Mutual Funds
Kaveri Mutual Fund collected money under a scheme but failed to invest it in the manner or within the period specified in SEBI regulations. Which provision of the SEBI Act, 1992 directly penalises this default?
Section 15D(f) applies. It penalises a registered mutual fund or collective investment scheme that fails to invest the money collected in the manner or within the period specified by regulations. Clause (c) relates to listing, Section 15E to AMC activity restrictions, and Section 15EA to other fund types.
- ASection 15D(f)Correct
- BSection 15D(c)
- CSection 15E
- DSection 15EA
Explanation
Section 15D(f) penalises a registered collective investment scheme, including a mutual fund, that fails to invest money collected in the manner or within the period specified in regulations. Clause (c) concerns failure to apply for listing. Section 15E concerns AMC activity restrictions, and 15EA concerns AIFs, InvITs and REITs.
Did you get it right without looking?
One question tells you little. A timed set on Mutual Funds shows your real accuracy, how long you take and where you lose marks.
More Mutual Funds questions
- Konark Asset Sponsors runs a registered mutual fund. It fails to comply with the terms and conditions of its certificate of registration, an…
- Under Section 11AA(2) of the SEBI Act, 1992, which condition is among those that make an arrangement a collective investment scheme?
- Vistara Infra Trust, an infrastructure investment trust, fails to comply with SEBI regulations and earns gains of Rs 5 crore from the failur…
- Sunrise Mutual Fund's asset management company, Sunrise AMC Ltd, breaches a SEBI regulation that places restrictions on the activities of as…
- A registered mutual fund breaches a term of its certificate of registration, and the breach continues for 40 days. Under Section 15D(b), wha…
- Orion Mutual Fund, a SEBI-registered fund, fails to refund application monies to investors within the period specified in the regulations. W…