Multiple choice

The structure which is required to be followed by mutual funds in India is laid down by the

  1. Finance Ministry

  2. Securities & Exchange Board of India (SEBI)

  3. Fund Sponsor

  4. Association of Mutual Funds in India (AMFI)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Securities and Exchange Board of India (SEBI) is the primary regulatory authority that establishes the structure and operational framework for mutual funds in India. SEBI (Mutual Funds) Regulations, 1996 lay down comprehensive guidelines covering registration, constitution, custody, and investment restrictions. The Finance Ministry, Fund Sponsors, and AMFI play different roles but do not define the regulatory structure.

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