Home › AMFI Mutual Fund › mutualfunds › Legal Structure of Mutual Funds › The prior approval of SEBI is specifically requi…
The prior approval of SEBI is specifically required before
A{'text': 'A person is appointed as a Trustee of a mutual fund', 'label': 'A'}
B{'text': 'A minor change in the AMC fund manager', 'label': 'B'}
C{'text': 'The RTA reprints an account statement', 'label': 'C'}
D{'text': 'A distributor onboards a new investor', 'label': 'D'}
Answer & Solution
Correct answer: A. {'text': 'A person is appointed as a Trustee of a mutual fund', 'label': 'A'}
1. SEBI regulations require its prior approval for appointment of a mutual fund Trustee.
2. This gate ensures that the person meets the fit and proper criteria.
3. Routine operational activities like distributor onboarding or RTA statement reprints do not need SEBI clearance.
4. Fund manager changes do not require prior SEBI approval, though the appointment must meet AMC key personnel norms.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.2.2_
Related questions
An 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 toWhich of the following statements about a Registrar and Transfer Agent is correct?Within the Fund Management team of an AMC, dealers are chiefly responsible forThe 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?