Skip to content

CS Executive · Capital Market and Securities Laws · Mutual Funds

Which of the following defaults by a registered mutual fund is NOT listed among the specific defaults penalised under Section 15D of the SEBI Act, 1992?

Failing to disclose a scheme's NAV on its website daily is not a listed default under Section 15D. That section covers unregistered operation, breach of registration terms, failure to apply for listing, despatch of unit certificates, refund of application monies and investment of money collected.

  1. AFailing to refund application monies within the period specified in the regulations
  2. BFailing to despatch unit certificates in the manner provided in the regulations
  3. CFailing to make an application for listing of its schemes as required by the regulations
  4. DFailing to disclose the net asset value of a scheme on its website dailyCorrect

Explanation

Section 15D lists carrying on without registration, breaching registration terms, failing to apply for listing, failing to despatch unit certificates, failing to refund application monies, and failing to invest money as specified. Daily NAV website disclosure is not a listed default there; it is governed by the Mutual Funds Regulations and falls under other penalty provisions. The other three options appear in clauses (c), (d) and (e).

Did you get it right without looking?

One question tells you little. A timed set on Mutual Funds shows your real accuracy, how long you take and where you lose marks.

Practise Mutual FundsFree diagnostic mock

More Mutual Funds questions