Multiple choice

The fund sponsor has to contribute

  1. nothing to the AMC

  2. the total net worth of the AMC

  3. at least 40% of the AMC's net worth

  4. exactly 50%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SEBI regulations require fund sponsors to hold at least 40% of the Asset Management Company's (AMC) net worth. This ensures the sponsor has significant financial commitment and skin in the game, aligning their interests with those of investors. The 40% threshold is a minimum requirement, not an exact figure like 50%.

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