The SEBI considers a number of aspects, including the Sponsor’s financial health and the integrity of the company, while deciding whether or not to issue a clearance. Among other things, the AMC structure for mutual funds should comprise 50% independent directors, a distinct board of trustees company with 50% independent trustees, and independently operated custodians in order to maintain a degree of separation between the three parties. Since a result, AMC is in charge of all financial matters, as trustees are in charge of all assets. Maintaining a delicate balance between them is essential for them to be able to keep an eye on each other.
New operating regulations have been released by the Securities and Exchange Board of India for silver ETFs, allowing investors to obtain exposure to the commodity in a more transparent manner. The regulator established the criteria for silver ETF investment goals, valuation, net asset value (NAV) computation, tracking error, tracking difference, and disclosure requirements. These criteria are now part of the rules.
To put it another way, a mutual fund is Important SEBI requirements should be kept in mind by investors. An independent custodian and a separate board of trustees should be included in the AMC structure for mutual funds in order to preserve a degree of separation between the fund managers, custodians, and trustees in the case of mutual funds. AMC is the company’s financial manager since it holds all of the company’s financial assets in trust for the trustees. Maintaining a delicate equilibrium between them is essential for both of them to have the ability to keep an eye on the other.
The SEBI takes into account the Sponsor, the financial health of the fund, and the integrity of the company before approving a new investment opportunity. To verify that mutual funds are operating in accordance with applicable laws and regulations, the Securities and Exchange Board of India (SEBI) conducts an annual audit of mutual funds in India every year. After six months, a mutual fund can invest up to 15% of its corpus, and no more than 25% of its corpus can be placed in money market investments for short-term liquidity needs.
To be successful, mutual funds must conform to the advertising principles. A minimum corpus of 50 crores is required for an open-ended scheme, whereas a minimum corpus of 20 crores is required for a closed-ended scheme, according to SEBI guidelines. Within nine months after receiving these savings plans, the money should be placed in a mutual fund. Since the funds are less likely to participate in good markets, the danger of experiencing a low NAV is decreased.
Investing in bitcoin through a mutual fund is allowed?
As a result of the lack of a central authority, the currency known as “cryptocurrency” is completely anonymous. It is a medium of exchange that uses cryptography to make and secure transactions, as well as manage new currency units. It is illegal and the government does not support it.