Can an existing Collective Investment Scheme raise further funds?


Can an existing Collective Investment Scheme (CIS) raise further funds?
            
1. No, because it is a close ended scheme
 2. Yes, at any time it can raise further funds from public
 3. No, it can not raise money from the investors even under the existing scheme
 4. No, unless a certificate of registration is granted by SEBI.

Answer:
4. No, unless a certificate of registration is granted by SEBI.

Explanation:
An existing Collective Investment Scheme cannot launch any new scheme or / raise money from the investors even under the existing scheme, unless a certificate of registration is granted to it by SEBI. 


In other words, after notification of regulations an existing collective investment scheme, even after obtaining provisional registration as well as after obtaining credit rating can not mobilise funds from the public unless a certificate of registration is granted to it.

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