alleryStart learning →The custody of scheme assets like securities and gold is held by
AThe AMC
BThe Sponsor
CThe Registrar and Transfer Agent
DThe Custodian
Answer & Solution
Correct answer: D. The Custodian
1. The AMC manages the scheme but does not hold the assets in its own name.
2. Custody of securities, gold and gold related instruments sits with the Custodian.
3. The Custodian is appointed by the Trustees under SEBI (Custodian) Regulations, 1996.
4. This separation is a core investor-protection control in the mutual fund structure.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.2.5_
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