alleryStart learning →The Trust Deed of a mutual fund is executed between
ASEBI and the AMC
BAMC and the Registrar
CSponsor and the Trustees
DTrustees and the Custodian
Answer & Solution
Correct answer: C. Sponsor and the Trustees
1. A mutual fund in India is constituted as a trust under the Indian Trusts Act, 1882.
2. The operations of that trust are governed by a Trust Deed.
3. The Trust Deed is executed between the Sponsors and the Trustees.
4. SEBI prescribes clauses that must appear in the Trust Deed.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.1_
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