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Which of the following reasons can be stated for the obligation of SEBI that states that a definite percentage of takings of main personnel in an AMC should be in the form of units of MF schemes they manage?
Checking the management efficiency of key employees of Asset Management Companies by doing so.
Alienating the choices of main employees of Asset Management Companies from unit holders of MF schemes.
Keeping the interest of unit holders of MF schemes and prime employees of Asset Management Companies in line.
All of these
None of these
Correct Option is Keeping the interest of unit holders of MF schemes and prime employees of Asset Management Companies in line.
Solution:Refer to the first and second paragraph of the given passage, ‘’…… Sebi has mandated that a minimum of 20% of the earnings of key personnel in an asset management company (AMC) should be in the form of units of MF schemes they manage, which does make perfect sense.The idea is to align the interest of key employees of AMCs with those of the unit holders of MF schemes.’’ Referring to the quoted text, we can infer that statement (c) is correct. Hence, option (c) is the most suitable answer choice.
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