Sponsor is the person who acting
alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute atleast 40%
of the networth of the Investment Manged and meet the
eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The
Sponsor is not responsible or liable for any loss or shortfall
resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.
The Mutual Fund is constituted as a trust in accordance with
the provisions of the Indian Trusts Act, 1882 by the Sponsor.
The trust deed is registered under the Indian Registration
Trustee is usually a company
(corporate body) or a Board of Trustees (body of individuals).
The main responsibility of the Trustee is to safeguard the
interest of the unit holders and inter alia ensure that the
AMC functions in the interest of investors and in accordance
with the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996, the provisions of the Trust Deed and the
Offer Documents of the respective Schemes. Atleast 2/3rd
directors of the Trustee are independent directors who are not
associated with the Sponsor in any manner.
Asset Management Company (AMC)
The AMC is appointed by the
Trustee as the Investment Manager of the Mutual Fund. The AMC
is required to be approved by the Securities and Exchange
Board of India (SEBI) to act as an asset management company of
the Mutual Fund. Atleast 50% of the directors of the AMC are
independent directors who are not associated with the Sponsor
in any manner. The AMC must have a networth of atleast 10
crore at all times.
Registrar and Transfer Agent
The AMC if so authorised by the
Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form,
redemption requests and dispatches account statements to the
unit holders. The Registrar and Transfer agent also handles
communications with investors and updates investor records.