Multiple choice

The terms of appointment of a broker by a fund are

  1. laid down by SEBI

  2. laid down by AMFI

  3. not uniform to all funds

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Different mutual funds have the flexibility to set their own terms when appointing brokers. While SEBI and AMFI provide regulatory frameworks and guidelines, the specific terms of appointment can vary based on the fund's requirements and the broker's role. This allows for customization based on the fund's size, investment strategy, and operational needs.

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