Collective Investment Scheme (CIS) is an investment scheme in which multiple people combine their money to invest in a specific asset(s) and share the profits as agreed upon prior to pooling the funds. Post-independence the CIS has grown greatly. The non-uniformed and largely ire-regulated environment has provided good scope for the misuse of the funds. Large-scale miss-utilization of funds and consequent fraudulent activities lead to establishing a regulated system for the operation of CIS. Committee was constituted under the Chairmanship of Dr. S. A. Dave to examine and finalize the draft for the regulation of Collective investment scheme. Subsequently the SEBI notification on collective investment scheme known as SEBI (collective investment schemes) regulation 1996 was issued on 15th Oct 1999. The SEBI (collective investment schemes) regulation 1996 described the way in which the Collective Investment Management Company should be registered, conditions for registration, process involve in the issue of Certificate of Registration, obligation of CIMC, winding up process of CIMC and liabilities of Trustees for the proper performance of CIS in India. The researcher will analyze these aspects in detail for understanding the process laid down for protection of interest of Unit holder in CIS in India.
