Ch.4 · AMFI Code of Conduct · medium

Which of the following statements about the SEBI (Mutual Funds) Regulations is CORRECT regarding dividend declaration?

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EXPLANATION

SEBI regulations mandate that dividends in mutual funds can only be declared from distributable surplus — which consists of realised profits and not unrealised appreciation. AMCs cannot guarantee dividends, and the frequency of dividend declaration is at the scheme's discretion, not mandatory.

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