Ch.3 · Sponsor, Trustee and AMC Roles · hard
What happens to a mutual fund scheme if the AMC loses its SEBI registration?
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EXPLANATION
If an AMC loses SEBI registration (due to violations or surrender), the mutual fund trust continues as the legal owner of scheme assets. The trustees must appoint a new SEBI-registered AMC to take over management. Unit holders are notified and given an exit option. Schemes are not automatically wound up — they transfer to the new AMC's management.
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