1.

Describe the role and responsibilities of Asset Management Company, Registrar, Custodian in the
management of mutual funds.
Ans. AMC - An asset management company (AMC) is a company that invests its clients' pooled funds
into securities that match declared financial objectives. Asset management companies provide
investors with more diversification and investing options than they would have by themselves.
AMCs manage mutual funds, hedge funds and pension plans, and these companies earn income by
charging service fees or commissions to their clients.
Roles

Responsibility same as functions studied in FM

Registrar - Registrar or transfer agents are the trusts or institutions that register and maintain detailed
records of the transactions of investors for the convenience of mutual fund houses.

Responsibility & Roles

A Registrar is responsible for accepting and processing the unit holders' applications, maintaining
units, carrying out communications with them, resolving their grievances and dispatching Account
Statements to them.
In addition, the registrar also receives and processes redemption, repurchase and switch requests.
The Registrar maintains register of unit holders of the Fund and other records as required by SEBI
Regulations and the laws of India.
An investor can get all the above facilities at the Investor Service Centers of the Registrar.
R & T agents also offer investors with all details related to new fund offers, maturity dates of fixed
maturity plans, or even the date and amount pertaining to dividend distributions.

Custodian - A trust company, bank or similar financial institution responsible for holding and
safeguarding the securities owned within a mutual fund. A mutual fund's custodian may also act as the
mutual funds transfer agent, maintaining records of shareholder transactions and balances.

Responsibility & Roles

Keeping track of mutual fund assets, sales and purchases, shareholder transactions and identities
are the primary duties of mutual fund custodians.
Tracking and recording trades by investors is vital to maintaining accurate records
Measuring, monitoring and tracking shareholder values, dependent on the size of their investment, is
critical to eliminating even the hint of fraud or impropriety.
Custodians can also collect and distribute interest and dividends to shareholders.
Custodians typically process investor redemption, purchases and sales of mutual fund shares.