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Introduction to Financial Markets (405) — CBSE Class 10 board question

Q1. [4] § What is the Regulatory Body for Mutual Funds?
“Every mutual fund investor enjoys certain rights under SEBI’s laws and rules and fund houses are bound to extend those rights to their investors.” Describe any four rights that are available to a mutual fund holder as per SEBI regulations on Mutual Fund.
Previously asked in CBSE board exam
2023 92 Q19
Generated by claude-sonnet-4-6 · 2026-06-15 07:08 · grounding rag
Model Answer

As per SEBI Regulations on Mutual Funds, an investor is entitled to the following rights:

  1. Unit Certificates: Receive unit certificates or statements of accounts confirming title within 6 weeks from the date the request is received by the Mutual Fund.
  1. Right to Information: Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme.
  1. Timely Returns: Receive dividend within 30 days of declaration and redemption/repurchase proceeds within 10 days from the date of redemption.
  1. Disclosure of Adverse Information: Trustees are bound to disclose any information that may have an adverse bearing on investors' investments.

Source: Chapter 7 — Rights of a Mutual Fund Holder

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Explanation
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