07 September 2010
This is a very lengthy and professional procedure which needs a consultant..
To put it simply, if you, yourself, want to set up.... You be the sponsor first and create a Trust. You are now like the promoter. There has to be a Trustee for the Trust (So create Trustee Company). Trustee Company (or Trustee) will look after the investment of the unit holders (investors) who will now make investments.
Once you have got investors to invest, the Trustee will have to appoint an Asset Management Company (AMC) to management the investment. AMC has to be approved by SEBI. AMC will manage the money which the Trustee's will supervise. AMCs will float various mutal fund schemes (Equty, Debt) etc.
There is also someone called Custodian (who is also registered with SEBI) who will take care of the "physical investments" that the AMC will buy on behalf of the investors.
So in nutshsell. Trustee looks after the investors money AMC invests (manages) the investors money. Custodian takes care of the investments (share certificates, for e.g.)
CAclubindia
