Multiple choice

Inter scheme transfers are allowed by SEBI, provided

  1. such transfers happen on delivery basis at market prices

  2. such transfer do not result in significantly altering the investment objectives of the schemes

  3. such transfer is not of illiquid securities, as defined in the valuation norms

  4. All the above conditions are satisfied
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SEBI permits inter-scheme transfers when all protective conditions are met simultaneously: transfers must be at fair market prices on delivery basis, should not materially change the scheme's investment objectives, and cannot involve illiquid securities. This prevents funds from dumping poor-quality assets onto other schemes or using transfers to manipulate returns.

Keep practicing — related questions