Ch.3 · Custodian and RTA Functions · medium

When were private sector mutual funds first permitted in India?

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EXPLANATION

Private sector mutual funds were first permitted in India in 1993. Prior to that, only UTI (from 1964) and later PSU banks and LIC/GIC (from 1987) were allowed to operate mutual funds. The entry of private players significantly increased competition, innovation, and investor choice in the mutual fund industry.

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