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ASSET MANAGEMENT COMPANY

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Asset Management Company (AMC) manages the funds by investing in various securities as per the offer document. It acts as the investment manager under the supervision and directions of the trustee. In short, Asset Management Company means a company formed & registered under the Companies Act, 2013 and under previous Companies Acts and also registered with SEBI. 

Example: HDFC Asset Management Company Limited & Reliance Capital Assets Management Limited. 

The AMC must be registered with SEBI before collecting and investing the fund in the securities market. The AMC should be governed under the SEBI (Mutual Fund) Regulations, 1996. 

AMC should be formed with the following objectives:

(i) Raising money against units.

(ii) Investing the funds in securities.

(iii) Distribution of income to the shareholders.

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