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The custody of scheme assets like securities and gold is held by
A{'text': 'The AMC', 'label': 'A'}
B{'text': 'The Sponsor', 'label': 'B'}
C{'text': 'The Registrar and Transfer Agent', 'label': 'C'}
D{'text': 'The Custodian', 'label': 'D'}
Answer & Solution
Correct answer: D. {'text': 'The Custodian', 'label': 'D'}
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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