Ch.3 · Sponsor, Trustee and AMC Roles · easy

What is the legal structure under which mutual funds are established in India?

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EXPLANATION

Mutual funds in India are constituted as trusts under the Indian Trusts Act, 1882. The Trust Deed is executed between the sponsor and the trustees. The AMC is a separate company appointed to manage the trust's investments. This three-tier structure (sponsor, trust/trustees, AMC) is the foundation of Indian mutual fund regulation.

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