Legal Aspects of Mutual Funds with Penalties Thereof

  • Nikita Mistry
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  • Nikita Mistry

    LLM student of SVKMS NMIMS Kirit P. Mehta School of Law, India.

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Mutual funds are the schemes that offer the good returns if invested under the correct schemes. Due to difference in the avenue being available it is also very risky to invest with as the market keeps fluctuating. M.F is a resource pooling investment vehicle under which units are allotted to the investors for investing into the securities market who directly cannot invest in the Capital Market. There are 4 main elements in the M.F without which the functions of the company cannot be carried out if so, impaired such as sponsor/AMC/ trustees/custodians. Among various other regulators SEBI is the one that make policies and regulates the M.F in India. SEBI as per the circular dated Aug 24th 2020 provided various relaxation to the M.F companies due to the COVID-19 situations being arose. Apart from that on Dec 31st 2020 under the master circular certain amendment were carried out in respect of the compliance with the unit purchase when funds so released across the various schemes. The significance and importance of the M.F is that because under this it provides various variations due to which even the smaller kind of investors has the opportunity to grow and prosper to achieve their desired goal and needs, the investments are low and the returns are high. It also allows them to deal with the share on regular basis. As the main regulator being SEBI even in the capital and intermediaries, it also provides with protection mechanism. On top of that the Ministry of Finance regulates both the SEBI and RBI. Advantages in terms of liquidity/ transparency/ professional handling of the management of assets are the few perks that comes guaranteed with the M.F. Further under this research project the role of SEBI in case of Shriram M.F and franklin Templeton are also laid in detailed thereof. Thus, it basically focuses on the legal aspects of the working of the M.F in India.


Research Paper


International Journal of Law Management and Humanities, Volume 5, Issue 3, Page 643 - 660


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