alleryStart learning →The minimum net worth prescribed for an Asset Management Company is
ARs. 5 crore
BRs. 10 crore
CRs. 25 crore
DRs. 50 crore
Answer & Solution
Correct answer: D. Rs. 50 crore
1. The AMC handles day-to-day scheme operations and needs financial substance.
2. SEBI regulations require an AMC to have a minimum net worth of Rs. 50 crore.
3. Trustees must review the AMC net worth every quarter and ensure any shortfall is made up.
4. A lower net worth does not meet the regulatory threshold.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.2.4_
Keep practising Legal Structure of Mutual Funds
Browse all Legal Structure of Mutual Funds questions for AMFI Mutual Fund, or explore more Mutualfunds topics.
Related questions
The prior approval of SEBI is specifically required beforeAn investor invested Rs. 10,000 in a mutual fund scheme when the NAV was Rs. 20. How many Which of these bodies may sponsor an Infrastructure Debt Fund set up as a Mutual Fund?The task of the Fund Accountant in a mutual fund is toThe Compliance Officer of an AMC is required to report directly to theThe appointment of an AMC can be terminated byAt least how much of the directors on the Board of an AMC must be independent?The minimum stake a Sponsor must contribute to the net worth of the AMC is