2B CHAPTER 9

Mutual funds in India follow a three-tier structure of sponsor, trust and asset management company (AMC).

The sponsor promotes the mutual fund and sets up the AMC.

The rights and obligations of the AMC are specified in the Investment Management Agreement signed between the Sponsor and the AMC.

Compliance Test Report is submitted by AMC to SEBI on a quarterly basis.

A sponsor cannot be a custodian of the fund

Mutual funds have to obtain SEBI approval before they set up their business

Constituents are paid fees for their services

Each MF scheme has been granted a unique International Securities Identification Number (ISIN) to facilitate holding of units in demat form.

The fund accountant relies on data provided by the RTA, bankers and custodians.

AMFI will assign a unique identification number to the employees (EUIN)