n NISM Certifications
VII NISM Series VII
Medium

Can a stock broker declare upfront whether a mutual fund subscription/redemption will be settled in physical or depository mode?

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Yes

    Correct answer

  2. B

    No

Why this is the answer

Exchange systems allow brokers to indicate upfront whether mutual fund transactions will be settled in physical or depository mode.

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