Structure of Mutual Funds | Sponsor, Trustee & AMC

Sponsor is the Promoter of #MutualFund Seeks #SEBI Registration for starting MF 5 years in Financial Services Business Profit making in 3 out of last 5 years Minimum 40% share-holding in AMC Positive Net Worth in last 5 years Indian / Foreign Sponsor, Joint Venture Trust – MF in India is a Trust. Minimum 4 trustees & two-thirds of the trustees - independent trustees SEBI Approval required, before a person is appointed as Trustee Person convicted of any economic offence or violation of any securities laws cannot be appointed as trustee #AMC – Day to Day operations of Mutual Fund 50% Independent directors. Trustee Approval required before a person is appointed as a Director Minimum net worth of Rs. 50 crore AMC can’t invest in its own schemes. Can be terminated by a majority of the trustees, or by 75% of the Unit-holders Chief Investment Officer (CIO) is responsible for overall investments. Fund managers assist the CIO Securities Analysts – Fundamental & Technical Analysis for stock picking. Securities Dealer – Order Execution Chief Marketing Officer (CMO) Chief Operations Officer handles all operational issues. Compliance Officer - Legal Compliances. Signs a due-diligence certificate in OD of New Issues. Compliance Officer reports to head of the AMC & works closely with Trustees on compliance & regulatory issues. Custodian – Custody of assets Settlement of Security Transactions SEBI registered, appointed by Trustee Custodial Agreement with Trustee Tracks dividends, bonus & rights of companies in the portfolio Normally Independent of Sponsor RTA – Registrar & Transfer Agents Maintains investor records Offices of RTA – ISC (Investor Service Centres) Appointed by AMC. (Optional). Can be In-House also All RTAs need to register with SEBI Auditors – Scheme & AMC Scheme Auditor Appointed by Trustee AMC Auditor appointed by AMC Fund Accountant – Calculation & Disclosure of NAV. Equity & balanced fund NAV upto 2 decimal places. Index & Debt Funds NAV – upto 4 Decimals. Daily night 9 pm in AMFI Site. FoF – By 10 am next day MF Mock Test - modelexam.in/nism-exams/nism-mutual-fund-mock-test… MF Notes - modelexam.in/nism-exams/nism_study_material_simple… NISM FAQ - modelexam.in/nism-exams/faq.html NISM Exam Calendar - modelexam.in/nism-exams/nism-exam-date-schedule-ce…

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• #structure_of_mutual_funds
• #mutual_fund_constituents
• #sponsor
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• #cio
• #cmo
• #fund_accountant
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• #3_tier_structure