Skip to content

CS Executive · Capital Market and Securities Laws · Collective Investment Schemes

Nidhi Sahakari Society, registered under a State co-operative societies law, runs a pooled savings arrangement that otherwise meets all the Section 11AA(2) conditions. What is the position under Section 11AA(3) of the SEBI Act, 1992?

It is not a collective investment scheme. Section 11AA(3) excludes, despite the sub-section (2) conditions being met, any scheme offered by a co-operative society registered under the 1912 Act or a State co-operative law, so no SEBI exemption is needed.

  1. AIt is a collective investment scheme only if the corpus is above Rs 100 crore
  2. BIt is a collective investment scheme because the four conditions are met
  3. CIt is not a collective investment scheme, because schemes made or offered by a registered co-operative society are excludedCorrect
  4. DIt is a collective investment scheme unless SEBI grants a specific exemption

Explanation

Section 11AA(3) applies notwithstanding sub-section (2) and excludes any scheme made or offered by a co-operative society registered under the Co-operative Societies Act, 1912 or under a State co-operative law. The fulfilment of the four conditions therefore does not matter. The Rs 100 crore deeming proviso applies only to schemes not covered under sub-section (3).

Did you get it right without looking?

One question tells you little. A timed set on Collective Investment Schemes shows your real accuracy, how long you take and where you lose marks.

Practise Collective Investment SchemesFree diagnostic mock

More Collective Investment Schemes questions