A mutual fund company is set up like trust with promoters/sponsors, Asset Management Company (AMC), Trustees, and Custodians. The no. of promoters could be more than one. The trustee of the company can hold its property for the benefit of the unitholders.
The AMC (must be approved by SEBI) is responsible for managing the funds by making investments in different types of securities. The custodian is also registered with SEBI, is responsible for holding securities of various schemes related to the funds in his/her custody. The trustees of these companies have been vested with the general power to supervise and direct the AMC. They are also responsible for the monitoring of performance and compliance as per SEBI norms.
The type of investments is as per the investment objectives disclosed in the offer documents. An applicant willing to register as a Mutual fund company in India has to submit Form A under Schedule I of SEBI regulations with a non-refundable fee of Rs. 5 lakhs.
For companies willing to get the certificate of registration, eligibility conditions set by SEBI must be met. The conditions are as per SEBI (Mutual Fund) regulation of 1996.
Here is a quick checklist of documents required to register as a mutual fund company:
Follow this step-by-step procedure to register your Mutual fund company in India.
The AMC that works under the mutual fund company is responsible for managing the funds of investors by making investments in different types of securities.
Mutual funds are of three types:
Close Ended: Fixed maturity plans and capital protection.
Open-Ended: Money market/liquid, Equity/growth funds. Index scheme, sectorial scheme, Tax saving schemes, balanced funds.
Interval Mutual funds: Allows investors trading of units at a pre-defined interval.
An applicant shall apply Form A as per SEBI Schedule I (Mutual Fund) Regulations, 1996 with a non-refundable fee of INR 5 Lakh.