ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    The primary regulatory objective of SEBI in the context

    of 'Mutual Funds' is to:
    A Guarantee returns to investors. Correct Answer Incorrect Answer
    B Promote, regulate, and ensure the integrity of the mutual fund industry and protect unit holders. Correct Answer Incorrect Answer
    C Set the investment portfolio for each fund. Correct Answer Incorrect Answer
    D Act as a sponsor for mutual funds. Correct Answer Incorrect Answer
    E Directly manage mutual fund schemes. Correct Answer Incorrect Answer

    Solution

    • SEBI's role is that of a┬а market regulator , not a portfolio manager or guarantor. Under the SEBI Act, 1992 and the SEBI (Mutual Funds) Regulations, 1996, its key objectives regarding mutual funds are:
      • Regulate ┬аthe establishment, operation, and management of mutual funds.
      • Protect the interests of unit holders ┬а(investors) by ensuring transparency, fair valuation, and proper disclosure of risks.
      • Promote ┬аthe development of a healthy and orderly mutual fund industry.
      • Ensure the integrity ┬аof the market by preventing fraud and malpractices.
        SEBI does not guarantee returns (option a is false) or decide portfolios (option c). Sponsors are independent entities (option d).

    Practice Next
    More Research Questions
    ask-question