Frequently Asked Questions
Who is a Sponsor?
A sponsor is a person or a body corporate who sets up a public trust, appoints trustees (with SEBI’s approval) to manage the trust and create an AMC.
- The sponsor invests the money on behalf of AMC
- He should have a sound working record and good reputation in the market.
- Sponsor should be having an experience of 5 years having positive net worth.
- The sponsor should be having profits in his name in 3 years out of previous 5 years.
- The sponsor should have a minimum of 40% of the share holding in the capital of the AMC.
- To ensure proper working and compliance with all the major regulations and protects the very important interest of the units holders.
- A person who is convicted of any fraud or economic offence and violation of any securities law cannot be appointed the trustee. ‘
- The sponsor will be required to appoint at least 4 trustees.
- General and Special Due Diligence is part of the duties of a trustee