CONSTITUTION AND MANAGEMENT OF MUTUAL FUND AND OPERATION OF TRUSTEES :

Regulation 14 stipulates that a mutual fund shall be constituted in the form of a trust and the instrument of trust shall be in the form of a deed, duly registered under the provisions of Indian Registration Act, 1908 and executed by the sponsor in favour of the trustees named in such instrument.

Regulation 15 lays down that the trust deed shall not contain such clause which has the effect of limiting or extinguishing the obligations and liabilities of the trusts in relation to any mutual fund or the unit holders or indemnifying the trustees or the asset management company for loss or damage caused to the unit holders by their acts of negligence, commission or omission.