Dos and Donts-Collective Investment Scheme (CIS)

2816 views 5 replies

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 https://investor.sebi.gov.in for CIMC registered with SEBI

and FAQs with regard to Collective Investment Schemes in their

respective vernacular languages

 

DON’TS

 

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

􀀸 Do not get carried away by indicative returns.

􀀸 Do not invest based on market rumours.

Replies (5)
Originally posted by : R.D Khan
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 https://investor.sebi.gov.in for CIMC registered with SEBI
and FAQs with regard to Collective Investment Schemes in their
respective vernacular languages
 
DON’TS
 
􀀸 Do not invest in any CIS entity not having SEBI registration.
􀀸 Do not get carried away by indicative returns.
􀀸 Do not invest based on market rumours.


 

Which entity you are referring here sir?

It not about any specific entity. Entity here refers to with which such scheme is entered into. It simply means that before investing in CIS ensure that the entity should be registered with SEBI and make sure that it is not an unregistered entity.

A Producer company is formed with agriculture farm oweners in a locality as members and the producer company  does the management of the agriculture farms, its harvesting, sale of produces etc. The members will get their corresponding share of sale value of produces after deducting the respective expenses and a managment fee for the producer company.  Will it come under CIS?

Most of us have our own perception of investment based on our experiences, but also tend to be confused with the opinions given by others. Knowing the do’s and don’ts of the stock market would help us turn really as a smart investor. https://www.holisticinvestment.in/dos-and-donts-in-the-stock-market Regards, Ramalingam K, MBA, CFP, Chief Financial Planner, Holistic Investment planner private Limited, Www.holisticinvestment.in

A Producer company is formed with agriculture farm oweners in a locality as members and the producer company  does the management of the agriculture farms, its harvesting, sale of produces etc. The members will get their corresponding share of sale value of produces after deducting the respective expenses and a managment fee for the producer company.  Will it come under CIS?
 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details