n NISM Certifications
X NISM Series X
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Can Investment Advisers accept cash from their clients as their advisory fees?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Yes, they can accept

  2. No, they cannot accept

    Correct answer

Why this is the answer

SEBI mandates that advisers accept fees only through banking channels like cheques, demand drafts, or direct bank transfers. Cash payments are prohibited to ensure transparency.

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