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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework

Under the SEBI (Mutual Funds) Regulations, which of the following entities is responsible for ensuring that the mutual fund's assets are held in safe custody and that the AMC operates in the interest of unit holders?

The trustees are responsible. They hold the fund's property for the benefit of unit holders and supervise the AMC to ensure it acts in investors' interest. RTAs, auditors and distributors have different, limited roles.

  1. ARegistrar and Transfer Agent
  2. BTrusteesCorrect
  3. CAuditor of the AMC
  4. DDistributor

Explanation

The trustees hold the mutual fund property for the benefit of unit holders and oversee the AMC's functioning. An RTA only handles unit records and transactions, and a distributor only sells schemes. An AMC's auditor does not supervise the AMC on behalf of unit holders.

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