Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 9 of 18

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Q81.
Under what circumstances should the Sponsor/Manager of AIF inform SEBI?

a.

Only in case of change in control of the AIF

b.

Only in case of change in the Sponsor

c.

Only in case of change in designated partners

d.

In case of any change in the Sponsor, Manager, designated partners, or any other material change

Discuss
Answer: (d).In case of any change in the Sponsor, Manager, designated partners, or any other material change Explanation:All AIFs shall inform SEBI in case of any change in the Sponsor, Manager, designated partners, or any other material change from the information provided by the AIF at the time of application for registration.
Q82.
How often should the policies and procedures of AIFs be reviewed?

a.

Quarterly

b.

Semi-annually

c.

Annually

d.

Biennially

Discuss
Answer: (c).Annually Explanation:All AIFs should review policies and procedures, and their implementation, on a regular basis, or as a result of business developments, to ensure their continued appropriateness.
Q83.
What is the requirement for appointing a custodian for the safekeeping of securities by AIFs?

a.

A custodian is mandatory for all AIFs

b.

A custodian is mandatory only if the corpus of AIF is more than 500 crore rupees

c.

A custodian is mandatory only for Category III AIFs

d.

A custodian is not required for any AIF

Discuss
Answer: (b).A custodian is mandatory only if the corpus of AIF is more than 500 crore rupees Explanation:The Sponsor/Manager of AIF shall appoint a custodian registered with the Board for the safekeeping of securities if the corpus of AIF is more than 500 crore rupees.
Q84.
What is the period for which records related to AIFs need to be maintained after the winding up of the fund?

a.

2 years

b.

3 years

c.

5 years

d.

10 years

Discuss
Answer: (c).5 years Explanation:The AIF Manager or Sponsor is required to maintain specified records for 5 years after the winding up of the fund.
Q85.
What responsibility does the Manager of AIF have regarding investor complaints?

a.

No obligation to address investor complaints

b.

Address and comply with all investor complaints

c.

Refer investor complaints to SEBI

d.

Ignore investor complaints

Discuss
Answer: (b).Address and comply with all investor complaints Explanation:The Manager of AIF is responsible to address and comply with all investor complaints.
Q86.
In what situation can an AIF set up as a trust be wound up?

a.

Only when the tenure of the AIF is over

b.

Only if SEBI directs in the interests of investors

c.

If 75% of the investors by value pass a resolution

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:An AIF set up as a trust may be wound up in various situations, including when the tenure of the AIF is over, if the trustees or trustee Co. believe it's in the interest of investors, if 75% of investors pass a resolution, or if SEBI directs in the interests of investors.
Q87.
How can an AIF set up as a LLP be wound up?

a.

Only when the tenure of the AIF is over

b.

If 75% of the investors by value pass a resolution

c.

If SEBI directs in the interests of investors

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:An AIF set up as a LLP may be wound up when the tenure is over, if 75% of investors pass a resolution, or if SEBI directs in the interests of investors.
Q88.
What is the procedure for winding up an AIF?

a.

The assets are liquidated, and the proceeds are distributed to investors within 6 months from the date of intimation.

b.

On and from the date of intimation, no further investments shall be made, and within 1 year, the assets shall be liquidated.

c.

The winding-up process can be initiated at any time without intimation to SEBI.

d.

The certificate of registration is surrendered to SEBI before the liquidation process begins.

Discuss
Answer: (b).On and from the date of intimation, no further investments shall be made, and within 1 year, the assets shall be liquidated. Explanation:On and from the date of intimation, no further investments shall be made, and within 1 year from the date of intimation, the assets shall be liquidated.
Q89.
What is required for the distribution of assets of the AIF upon winding up?

a.

The assets are distributed according to the discretion of the trustees or Board of Directors.

b.

The assets are distributed according to the preference of investors after obtaining approval of at least 50% of the investors by value.

c.

The assets are distributed according to the preference of investors after obtaining approval of at least 75% of the investors by value.

d.

The assets are automatically distributed to the investors without any approval.

Discuss
Answer: (c).The assets are distributed according to the preference of investors after obtaining approval of at least 75% of the investors by value. Explanation:The specific distribution of assets of the AIF, upon winding up, shall be made by the AIF at any time, including on winding up, as per the preference of investors, after obtaining approval of at least 75% of the investors by value of their investment in the AIF.
Q90.
What is the primary form in which venture capital is provided?

a.

Debt capital

b.

Equity capital

c.

Hybrid capital

d.

Loan capital

Discuss
Answer: (b).Equity capital Explanation:Venture capital is provided mainly in the form of equity capital.
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