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CS Executive · Capital Market and Securities Laws · Collective Investment Schemes

Which of the following defaults by a registered collective investment scheme is NOT specifically listed as a ground for penalty in Section 15D?

Failure to file an income tax return is not a Section 15D default. That section covers operating without registration, breaching registration conditions, not applying for listing, not despatching certificates, not refunding application monies and not investing collected money as the regulations require.

  1. AFailure to make an application for listing of its schemes as the regulations provide
  2. BFailure to invest money collected in the manner or within the period specified in the regulations
  3. CFailure to comply with the terms and conditions of the certificate of registration
  4. DFailure to file an annual return of income with the income tax authorityCorrect

Explanation

Section 15D covers carrying on without registration, breach of registration terms, failure to apply for listing, failure to despatch unit certificates, failure to refund application monies and failure to invest money as required. Income tax filing is governed by a different law and is not a Section 15D default.

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