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Ch.4 · AMFI Code of Conduct · hard

Which of the following is a consequence for an AMC if investor complaints remain consistently unresolved?

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EXPLANATION

SEBI has the power to cancel or suspend an AMC's registration for persistent failure to resolve investor complaints or for serious violations. This is one of SEBI's enforcement powers under the SEBI (Mutual Funds) Regulations, 1996.

A.SEBI can cancel the AMC's registration [✓ Correct]

B.SEBI can only issue a warning letter

C.AMFI automatically suspends the AMC's operations

D.The AMC's NAV is frozen by SEBI

EXPLANATION

SEBI has the power to cancel or suspend an AMC's registration for persistent failure to resolve investor complaints or for serious violations. This is one of SEBI's enforcement powers under the SEBI (Mutual Funds) Regulations, 1996.

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