n NISM Certifications
X NISM Series X
Medium

As per SEBI’s Stewardship circular, actions such as maintaining records of decisions involving conflicts of interest and segregating voting functions are measures to address conflicts of interest in fund management. These practices help ensure transparency and protect investor interests.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Maintenance of records of minutes of decisions taken of meetings in which matters of conflict are discussed

  2. B

    Segregation of voting function and client relations/ sales functions

  3. C

    Supporting uniform pay structure for all personnel in the management company

  4. A and B only

    Correct answer

Why this is the answer

SEBI emphasizes record-keeping and segregation of voting and sales functions to mitigate conflicts of interest in fund management.

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