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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework

Which of the following is true about the role of SEBI and AMFI in the mutual fund industry?

SEBI is the statutory regulator that frames the Mutual Fund Regulations, whereas AMFI is an industry association of AMCs that promotes best practices, investor awareness and distributor certification. AMFI does not have statutory regulatory authority.

  1. AAMFI is the statutory regulator of mutual funds
  2. BSEBI regulates mutual funds, while AMFI is an industry body promoting best practicesCorrect
  3. CAMFI frames the SEBI Mutual Fund Regulations
  4. DSEBI is an association of AMCs

Explanation

SEBI is the statutory regulator and frames the Mutual Fund Regulations. AMFI is an industry association of AMCs that promotes professional standards, distributor certification and the code of conduct, but it has no statutory regulatory power.

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