CS Executive · Capital Market and Securities Laws · Mutual Funds
Which one of the following defaults by a registered mutual fund is covered by Section 15D of the SEBI Act, 1992, rather than by Section 15EA?
A mutual fund failing to despatch unit certificates in the manner provided in the regulations is covered by Section 15D(d). Section 15EA deals only with defaults by alternative investment funds, infrastructure investment trusts and real estate investment trusts, so the other options fall under it.
- AAn alternative investment fund breaching SEBI's AIF regulations
- BA real estate investment trust ignoring SEBI directions
- CA mutual fund failing to despatch unit certificates in the manner provided in the regulationsCorrect
- DAn infrastructure investment trust breaching SEBI's InvIT regulations
Explanation
Section 15D(d) penalises a registered mutual fund or CIS that fails to despatch unit certificates as the regulations provide. Section 15EA applies to defaults relating to alternative investment funds, infrastructure investment trusts and real estate investment trusts, which covers the other three options.
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