Multiple choice

The custodian of a mutual fund

  1. is appointed for safekeeping of securities

  2. need not be an entity independent of the sponsors

  3. is not required to be registered with SEBI

  4. does not give or receive deliveries of physical securities
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Custodians are appointed specifically for safekeeping of securities. They must be independent of sponsors (so B is false), registered with SEBI (C is false), and handle deliveries of physical securities (D is false).

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