Ch.3 · Sponsor, Trustee and AMC Roles · hard
What are the 'associate transactions' restrictions in the mutual fund structure?
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EXPLANATION
SEBI regulations restrict and require disclosure of transactions between mutual fund schemes and associate entities (companies related to the AMC/sponsor). Examples include investing in associate company securities, using associate brokers, or banking with associate banks. All such transactions must be at arm's length, approved by trustees, and disclosed in the SAI to prevent conflicts of interest.
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