NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal Structure of Mutual Funds in India
Which of the following activities is an AMC of a mutual fund permitted to undertake in addition to managing the mutual fund schemes, subject to SEBI conditions?
An AMC may provide portfolio management services, subject to SEBI conditions that avoid conflict with mutual fund activities. It cannot carry on deposit-taking or lending businesses, as these are not permitted alongside managing mutual fund schemes.
- AAccepting public deposits as a non-banking finance company
- BProviding portfolio management servicesCorrect
- CCarrying on lending and borrowing as a primary business
- DManaging the trustee company's accounts
Explanation
An AMC may offer portfolio management and advisory services, subject to SEBI conditions such as no conflict of interest with the mutual fund business. Accepting deposits or lending as a business is prohibited for AMCs.
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