COLLECTIVE INVESTMENT SCHEME (CIS)- DOs & DON’Ts

COLLECTIVE INVESTMENT SCHEME (CIS)- DOS

** Before investing ensure that the entity is registered with SEBI.

** Read the offer document of the scheme especially the risk factors

carefully.

** Check the viability of the project.

** Check and verify the background/expertise of the promoters.

** Ensure clear and marketable title of the property/assets of the entity.

** Ensure that the Collective Investment Management Company has the

necessary infrastructure to carry out the scheme.

** Check the credit rating of the scheme and tenure of the rating.

** Check for the appraisal of the scheme and read the brief appraisal

report.

** Read carefully the objects of the scheme.

** Check for the promise vis-a-vis performance of the earlier schemes in

the offer document.

** Ensure that CIMC furnishes a copy of the Annual Report within two

months from the closure of the financial year.

** Note that SEBI cannot guarantee or undertake the repayment of money

to the investors.

** Please visit http://investor.sebi.gov.in for CIMC registered with SEBI

and FAQs with regard to Collective Investment Schemes in their

respective vernacular languages

COLLECTIVE INVESTMENT SCHEME (CIS) - DON’TS

X Do not invest in any CIS entity not having SEBI registration.

X Do not get carried away by indicative returns.

X Do not invest based on market rumours.

Src: SEBI 

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