Q. Mutual Fund Lite (MF Lite) framework, introduced by Securities and Exchange Board of India (SEBI), aims to:

[A] Impose stricter financial and operational reporting standards on all mutual fund schemes to ensure higher transparency across the sector.

[B] Simplify regulatory requirements for smaller asset management companies.

[C] Mandate a minimum capital infusion from promoters for all mutual funds to align with global best practices in asset management.

[D] Limit the distribution of mutual fund products to institutional investors.

Answer: B
Notes:

Explanation – The Mutual Fund Lite (MF Lite) framework introduced by SEBI aims to simplify regulatory requirements, making it easier for smaller asset management companies to enter the market by reducing compliance burdens and easing entry barriers for passively managed mutual fund schemes like ETFs and index funds.

Source: The Hindu

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