Under the SEBI (Mutual Funds) Regulations, 2026, who must oversee the asset management company and protect the interests of unitholders?
Question and options
Under the SEBI (Mutual Funds) Regulations, 2026, who must oversee the asset management company and protect the interests of unitholders?
The trustees
The custodian
The sponsor
The registrar and transfer agent
Answer and explanation
Correct answer: A - The trustees
Under regulation 12 of the SEBI (Mutual Funds) Regulations, 2026 the trustees appoint the asset management company, monitor its conduct, address conflicts of interest and ensure that transactions do not prejudice unitholders. The sponsor sets up the fund but does not supervise the asset management company on unitholders’ behalf.
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