Under the SEBI (Mutual Funds) Regulations, what voting threshold of unitholders is required to pass a resolution to terminate the appointment of an Asset Management Company (AMC) or to wind up a scheme?

[ A ]75 percent of the unitholders (unitholding)[ CORRECT ]

[ B ]Simple majority of 51 percent of unitholders present in person

[ C ]100 percent unanimous consent of all registered folios

[ D ]10 percent of institutional unitholders only

Takeaway

Option A is correct: 75 percent of the unitholders (unitholding)

Derivation

Under SEBI (Mutual Funds) Regulations, 2026, 75 percent of the unitholders (by unitholding value) of a scheme have the statutory power to pass a resolution to terminate the appointment of the Asset Management Company (AMC) or to wind up the scheme. Trustees are legally bound to call for unitholder consent whenever 75% of unitholders request it. This question tests unitholder governance powers. The common pitfall is confusing this special 75% majority threshold with a standard 51% corporate simple majority.

Why the others fail

B — Simple majority of 51 percent of unitholders present in person

A simple majority of 51% is insufficient; SEBI regulations specifically mandate a 75% unitholder voting threshold.

C — 100 percent unanimous consent of all registered folios

100% unanimous consent is not required under mutual fund law, as achieving unanimity across thousands of investors is impractical.

D — 10 percent of institutional unitholders only

The 75% voting threshold applies to all unitholders based on total unit value, not exclusively to institutional holders.