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    Question

    Which of the following are the characteristics of

    Collective Investment Scheme?
    A the contributions, or payments made by the investors, are pooled and utilized for the purposes of the scheme or arrangement Correct Answer Incorrect Answer
    B the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable Correct Answer Incorrect Answer
    C the investors have day-to-day control over the management and operation of the scheme or arrangement Correct Answer Incorrect Answer
    D Both a and b Correct Answer Incorrect Answer
    E All a, b and c Correct Answer Incorrect Answer

    Solution

    Section 11AA of SEBI Act Collective investment scheme.β€”(1) Any scheme or arrangement which satisfies the conditions referred to in sub-section (2) or sub-section (2A) shall be a collective investment scheme: Provided that any pooling of funds under any scheme or arrangement, which is not registered with the Board or is not covered under sub-section (3), involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme. (2) Any scheme or arrangement made or offered by any person under which,β€” (i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement; (ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement; (iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; (iv) the investors do not have day-to-day control over the management and operation of the scheme or arrangement.

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