Consider the following statements regarding Collective Investment Scheme CIS in Indian context 1 It ...........

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Consider the following statements regarding Collective Investment Scheme (CIS) in Indian context:

1.It refers to any privately pooled investment fund in the form of a trust or a company or a body corporate.

2.CIS includes chit funds and mutual funds.

3.The CIS is regulated by the securities market regulator SEBI.

Which of the statements given above is/are correct?

1 and 3 only

1 and 2 only

3 only

1 only

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Explanation:

1 and 3 only

It refers to any privately pooled investment fund in the form of a trust or a company or a body corporate.

This statement is correct. Collective Investment Scheme (CIS) indeed refers to any privately pooled investment fund, which can be in the form of a trust, a company, or a body corporate. CIS enables multiple investors to pool their funds for investment purposes.

CIS includes chit funds and mutual funds.

This statement is not entirely accurate. While mutual funds are considered a type of Collective Investment Scheme, chit funds do not fall under the definition of CIS in the Indian context. Chit funds are regulated separately under the Chit Funds Act of 1982.

The CIS is regulated by the securities market regulator SEBI.

This statement is correct. In India, Collective Investment Schemes (CIS) are regulated by the Securities and Exchange Board of India (SEBI) to ensure investor protection and market integrity.

Therefore, only statements 1 and 3 are correct