Under which statute does SEBI have the function of registering and regulating the working of collective investment schemes, including mutual funds?
Question and options
Under which statute does SEBI have the function of registering and regulating the working of collective investment schemes, including mutual funds?
Depositories Act, 1996
Securities and Exchange Board of India Act, 1992
Reserve Bank of India Act, 1934
Securities Contracts (Regulation) Act, 1956
Answer and explanation
Correct answer: B - Securities and Exchange Board of India Act, 1992
Section 11(2)(c) of the Securities and Exchange Board of India Act, 1992 lists among SEBI’s functions registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds; the SEBI (Mutual Funds) Regulations, 2026 are made under that Act. The Securities Contracts (Regulation) Act, 1956 deals with recognition of stock exchanges and contracts in securities, not with mutual funds.
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