NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
Under the SEBI (Mutual Funds) Regulations, who is responsible for holding the assets of a mutual fund scheme in safe custody on behalf of unit holders?
The custodian, appointed by the trustees, holds the securities of a mutual fund scheme in safe custody for unit holders. The AMC manages investments but does not keep the assets, and the RTA only maintains investor records and processes transactions.
- AThe Custodian appointed by the trusteesCorrect
- BThe Asset Management Company directly
- CThe Registrar and Transfer Agent
- DThe Sponsor of the mutual fund
Explanation
Mutual fund assets are held by a custodian who is independent of the sponsor and appointed by the trustees. The AMC manages the portfolio but does not hold the securities. The RTA handles unit records and transactions, not asset custody.
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