Private lender YES Bank announced that it has received final regulatory approval from the.....to start mutual fund business.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Private lender YES Bank announced that it has received final regulatory approval from the____to start mutual fund business.

A	Finance Ministry
B	SBI
C	SEBI
D	RBI

Explanation:

Detailed explanation-1: -As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market.

Detailed explanation-2: -A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) before it can collect funds from the public.

Detailed explanation-3: -Role of SEBI in Mutual Fund Regulations As far as mutual funds are concerned, SEBI is the policymaker and also regulates the industry. It lays guidelines for mutual funds to safeguard the investors’ interest. Mutual funds are very distinct in terms of their investment strategy and asset allocation activities.

Detailed explanation-4: -Mutual funds are managed by Asset Management Companies (AMC), which need to be approved by SEBI. A Custodian who is registered with SEBI holds the securities of various schemes of the fund. The trustees of the AMC monitor the performance of the mutual fund and ensure that it works in compliance with SEBI Regulations.

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