GreenFunds Education, not financial advice India
Who watches over it · 6 min · one of the trickiest

SEBI's rules and disclosures

The rulebook, and how it is enforced

The last lesson showed the structure. This one shows the referee’s rulebook: what SEBI demands, and what it can do when a fund steps out of line.

Rules follow the SEBI (Mutual Funds) Regulations, 1996, as amended. Education for the NISM Series V-A exam, not financial advice.

  1. 1

    SEBI registers every mutual fund and can inspect, investigate and penalise, so no fund runs unwatched.

  2. 2

    The SEBI (Mutual Funds) Regulations, 1996 are the rulebook every fund must follow.

  3. 3

    Funds must disclose regularly: the scheme documents, the portfolio, the daily NAV, and periodic reports.

  4. 4

    Break the rules and SEBI can fine the fund, bar the people involved, or cancel its registration.

Rupee example

Every scheme publishes its portfolio and its NAV, so you can always check where your money is and what a unit is worth today.

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Practice

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Real exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.

Answer by voice
Tap the mic and say A, B, C or D. Typing is optional.

Which law is the main rulebook for mutual funds in India?

The SEBI (Mutual Funds) Regulations, 1996 govern mutual funds specifically.
The others govern companies, the central bank and banks, not funds.

SEBI's powers over a mutual fund include:

SEBI can inspect, investigate and penalise. It regulates, it does not manage the money.
Managing schemes and setting NAV are the AMC's work.

How often must a scheme disclose its NAV?

Daily NAV disclosure lets investors always see a unit's worth.
Monthly or quarterly would hide the day-to-day value.

If an AMC breaks SEBI's rules, SEBI can:

Real penalties, up to cancelling registration, are what give the rules teeth.
SEBI does not run the schemes itself.

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