NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal Structure of Mutual Funds in India
Under SEBI (Mutual Funds) Regulations, which of the following is a condition for a person to be eligible as a sponsor of a mutual fund?
A sponsor must have a sound track record and a reputation for fairness and integrity in business dealings, along with the required business experience and net worth. It need not be a bank, cannot be required to be an individual, and need not own the whole AMC.
- AThe sponsor must have a sound track record and general reputation of fairness and integrity in business transactionsCorrect
- BThe sponsor must be a bank regulated by the RBI
- CThe sponsor must be an Indian resident individual
- DThe sponsor must hold 100% of the AMC's capital
Explanation
Sponsor eligibility includes a sound track record, fairness and integrity, and meeting net worth and profitability conditions. It need not be a bank or an individual. Sponsor must hold at least 40% of AMC net worth, not necessarily 100%.
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More Legal Structure of Mutual Funds in India questions
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