n NISM Certifications
VII NISM Series VII
Medium

A portfolio manager must act in a fiduciary capacity regarding a client’s funds and segregate each client’s holdings in separate accounts. True or False?

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Acting in a fiduciary capacity requires trust and loyalty. Portfolio managers must segregate each client’s holdings in separate accounts as per SEBI (Portfolio Managers) Regulations, 2020.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.