alleryStart learning →The prior approval of SEBI is specifically required before
AA person is appointed as a Trustee of a mutual fund
BA minor change in the AMC fund manager
CThe RTA reprints an account statement
DA distributor onboards a new investor
Answer & Solution
Correct answer: A. A person is appointed as a Trustee of a mutual fund
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_
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