NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
Under the SEBI mutual fund regulations, which statement about a mutual fund's Statement of Additional Information (SAI) and Scheme Information Document (SID) is correct?
The SID carries scheme-specific information such as investment objective, asset allocation and risks, whereas the SAI carries general information about the mutual fund, including its sponsor, trustees and AMC. Both are available when the offer is made, and neither is prepared by stock exchanges.
- AThe SID contains details specific to a scheme, while the SAI contains details about the mutual fund as a wholeCorrect
- BThe SAI is scheme specific and the SID covers the entire fund house
- CBoth documents are issued only after the NFO closes
- DThe SAI is prepared by the stock exchange for each scheme
Explanation
The SID gives scheme-specific information such as objective, asset allocation, risk factors and expenses. The SAI provides statutory and general information about the mutual fund, sponsor, trustees and AMC. Both are available at the time of offer, not after the NFO closes.
Did you get it right without looking?
One question tells you little. A timed set on Legal and Regulatory Framework shows your real accuracy, how long you take and where you lose marks.
More Legal and Regulatory Framework questions
- An AMC wants to launch a new open-ended scheme. Which sequence best reflects the regulatory process under SEBI regulations?
- Which statement about the AMFI Registration Number (ARN) for a mutual fund distributor is correct?
- Under the SEBI (Mutual Funds) Regulations, which of the following is the regulator that registers mutual funds in India?
- Which statement about the AMFI Registration Number (ARN) for mutual fund distributors is correct?
- Which statement about the Statement of Additional Information (SAI) of a mutual fund is correct?
- As per SEBI regulations, what is the position on an AMC charging entry load to investors in mutual fund schemes?