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The Trust Deed of a mutual fund is executed between
A{'text': 'SEBI and the AMC', 'label': 'A'}
B{'text': 'AMC and the Registrar', 'label': 'B'}
C{'text': 'Sponsor and the Trustees', 'label': 'C'}
D{'text': 'Trustees and the Custodian', 'label': 'D'}
Answer & Solution
Correct answer: C. {'text': 'Sponsor and the Trustees', 'label': 'C'}
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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