Passlane Sign in

Ch.4 · SEBI Mutual Fund Regulations · hard

What is the track record requirement for a sponsor to be eligible to set up a mutual fund in India?

0% of students got this wrong

EXPLANATION

As per SEBI (Mutual Funds) Regulations, 1996, a sponsor must have been profitable in at least 3 out of the immediately preceding 5 years, including the latest year, to be eligible to set up a mutual fund.

A.Profitability in at least 2 of the immediately preceding 3 years

B.Profitability in at least 3 of the immediately preceding 5 years [✓ Correct]

C.Profitability in at least 5 of the immediately preceding 7 years

D.Continuous profitability for the last 5 years

EXPLANATION

As per SEBI (Mutual Funds) Regulations, 1996, a sponsor must have been profitable in at least 3 out of the immediately preceding 5 years, including the latest year, to be eligible to set up a mutual fund.

Practising Chapter 4 one question at a time?

Try the full chapter — 120 questions, tracked score, weak area breakdown.

Practice Chapter 4 →Take the mock test →