Answer: C. SEBI
The business of Mutual Funds in India is regulated by the Securities & Exchange Board of India (SEBI).
SEBI (Mutual Funds) Regulations, 1996 and certain other guidelines have been issued by SEBI that sets uniform standards for all mutual funds in India.
Mutual funds, either promoted by public or by private sector entities including one promoted by foreign entities, are governed by these regulations.
All the mutual funds have to be registered with SEBI. The regulations have laid down a detailed procedure for the launching of schemes, disclosure in the offer document, advertisements, listing and repurchase of closed-end schemes, offer period, transfer of units, investments, among others.
Along with SEBI, mutual funds are regulated by the Reserve Bank of India (RBI).
RBI role is to regulating banking industry in India but as many mutual fund
companies are backed by banks so indirectly RBI has significant contribution and role for safeguarding the interest of investors and other stakeholders in India.
- CHAPTER: 3 Regulatory Framework of Mutual Funds in India
- How Are Mutual Funds Regulated In India?
- Mutual Fund Basics