Ch.3 · Custodian and RTA Functions · medium
Can the same entity act as both Sponsor and AMC for a mutual fund?
0% of students got this wrong
EXPLANATION
The sponsor and AMC must be separate legal entities. While the sponsor typically promotes and owns a majority stake in the AMC, they are distinct companies. This separation ensures the AMC can be managed independently and can be replaced by the trustees if necessary without disrupting the entire fund structure.
Practising Chapter 3 one question at a time?
Try the full chapter — 80 questions, tracked score, weak area breakdown.