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Advantages And Disadvantages Of Sebi

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The Chairman,SEBI vs.Shriram Mutual Fund & Anr
In this case SEBI filed an appeal against Appeallate tribluunal, Mumbai. The Tribunal passed an order and judgment which raised a question of law that if once it is conclusively established that the mutual fund company has violated the terms and conditions of certificate of registration and the statutory regulations which is prescribed by SEBI(Mutual Fund) Regulations,1996 then imposition of penalties becomes sine qua non of the violation.
Shriram a mutual fund company was registered under SEBI in the year 1994. It had offered 5 different schemes. But the respondent did not fulfill the necessary conditions and terms which is attached for the certificate of registration. Regulation 15(D)(b) of SEBI Act,1992 deals with this. So, …show more content…

It hwas held that, in case of any breach of obligation, penalty in a nature of fine will be imposed irrespective of the fact whether the breach of obligation was made by the defaulter with guilty intention or not.

INVESTORS PROTECTION- ISSUES AND CHALLENGES

ADVANTAGES OF EQUITY MUTUAL FUND:
If we consider with other investment options equity mutual fund is provide maximum benefits to the investors. Asset Management Company that properly invest it’s client fund into the security market as per their objectives which has defined in their prospectus. The fund manager has proper team to research so to make proper planning for investment with strategy and to succeed the highest market return.
The advantages of mutual fund are as follows:
 Diversification:
Equity mutual fund gives offer pervasive diversification even for a very small initial investment. For the average and small investors if they want to achieve same portfolio diversification they have to spend huge money. Here the equity fund generally keep less than 1% to 5% of assets in any individual stock.
 Professional

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