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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund

Under the SEBI-prescribed structure, who holds the assets of a mutual fund scheme on behalf of unit holders and ensures the AMC acts as per regulations?

The trustees hold the mutual fund's property in trust for unit holders and oversee the AMC's compliance with SEBI regulations. The sponsor only sets up the fund, while the registrar maintains investor records and the fund accountant computes NAV.

  1. AThe sponsor
  2. BThe trusteesCorrect
  3. CThe registrar and transfer agent
  4. DThe fund accountant

Explanation

Trustees (a trust company or board of trustees) hold the scheme property for the benefit of unit holders and supervise the AMC's compliance. The sponsor establishes the fund, the RTA handles unit records, and the fund accountant computes NAV. Custody of securities is with the custodian, but trustees are the legal holders.

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