Multiple choice

Responsibility to ensure ethical behaviour on part of all mutual fund participants finally rests on

  1. Fund trustees

  2. SEBI

  3. AMFI

  4. Distributors
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

While SEBI regulates the industry and AMFI sets guidelines, the ultimate fiduciary responsibility lies with the fund trustees. Trustees oversee the AMC's operations, ensure compliance with SEBI regulations, and protect unit holder interests. They are appointed specifically to monitor ethical conduct and governance. Distributors and AMCs are market participants who must follow rules, but they don't bear the final responsibility - that rests with the independent board of trustees.

Keep practicing — related questions