alleryStart learning →The minimum stake a Sponsor must contribute to the net worth of the AMC is
A10 percent
B40 percent
C25 percent
D51 percent
Answer & Solution
Correct answer: B. 40 percent
1. SEBI requires the sponsor to invest a substantial stake in the AMC.
2. The minimum sponsor contribution to the net worth of the AMC is 40 percent.
3. Anyone holding 40 percent or more of the AMC is deemed a sponsor.
4. Such a holder must independently meet the sponsor eligibility norms.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.2.1_
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