Multiple choice

SEBI restricts mutual fund investments in companies forming part of the same group as the AMC. This is:

  1. false

  2. in the interest of investor protection

  3. applied only to some mutual funds, not all

  4. not favorable to investors at all
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SEBI restricts mutual fund investments in companies belonging to the same group as the Asset Management Company (AMC). This regulation is specifically designed to protect investors by preventing potential conflicts of interest, self-dealing, or misallocation of funds within the group. The restriction applies to all mutual funds uniformly.

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