Multiple choice

The net worth of an asset management company

  1. should be greater than Rs. 100 crores

  2. can be decided by the sponsor

  3. should be Rs. 10 crores at all times

  4. should be at least Rs. 10 crores at all times
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SEBI mandates that an Asset Management Company (AMC) must maintain a minimum net worth of Rs. 10 crores at all times. This capital adequacy requirement ensures financial stability and operational capacity. The requirement is continuous - not just at inception - and Rs. 10 crores is the regulatory floor, not Rs. 100 crores or a variable amount.

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