Q1. [4]
“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:
- 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.
- Right to Information: Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme.
- Timely Returns: Receive dividend within 30 days of declaration and redemption/repurchase proceeds within 10 days from the date of redemption.
- 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
- This is a competency-based question, but the answer is directly drawn from the SEBI regulations listed in the chapter — so quote the specific time limits (6 weeks, 30 days, 10 days) as examiners look for these precise figures.
- Pick any four from the seven listed rights; the four above are the most commonly tested.
- Avoid writing about benefits of mutual funds — the question specifically asks about rights under SEBI regulations.
- Each point should be crisp — one line with a bold heading earns full credit in board exams.
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