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

How can the empanelment of a mutual fund distributor be terminated?

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The empanelment gets automatically terminated on the completion of the term of empanelment

  2. Asset Management Company can terminate the empanelment at any time

    Correct answer

  3. C

    When all the clients of the distributor shift to Direct Plans

  4. D

    All of the above

Why this is the answer

As per the agreement with the AMC, they reserve the right to terminate the empanelment of a distributor at their discretion.

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