n NISM Certifications
V-A NISM Series V-A
Medium

As per SEBI's mandate, AMCs have to put in place a due diligence process to regulate distributors. Which of these mutual fund distributors would NOT be subjected to the due diligence process?

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. AUM raised of Rs. 60 crore across industry in the non-institutional category

    Correct answer

  2. B

    Commission received over Rs. 125 lakhs p.a. across industry

  3. C

    Multiple point presence in more than 25 locations

  4. D

    Commission received of over Rs. 75 Lakhs from a single mutual fund

Why this is the answer

As per SEBI's guidelines, distributors who meet certain criteria, such as raising an AUM of Rs. 100 crore or more or earning over Rs. 1 crore in commissions, must undergo a due diligence process. The distributor in this question does not meet the AUM threshold.

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Nism VA Mock Test 6