Multiple choice

A closed-end scheme is not governed by

  1. exchange rules of the stock exchange where it is listed

  2. listing agreement between the fund and the stock exchange

  3. guidelines issued by the Ministry of Commerce

  4. provisions of the Companies Act, 1956 relating to transactions in securities
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Closed-end mutual funds are governed by SEBI regulations, stock exchange listing rules where they're listed, and the listing agreement between the fund and exchange. They are also subject to Companies Act provisions for securities transactions. However, Ministry of Commerce guidelines do not regulate mutual fund schemes.

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