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

How will an application to subscribe to mutual fund units be treated if an AMFI Registration Number (ARN) is mentioned in the application form and the choice of Regular Plan is indicated?

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It will be treated as a regular plan application

    Correct answer

  2. B

    It will be treated as an incomplete application and rejected

  3. C

    It will be treated as an incomplete application and returned for completion

  4. D

    It will be treated as a direct plan application

Why this is the answer

If an investor opts for a Regular Plan and mentions the ARN (AMFI Registration Number) of a distributor, the application will be treated as a regular plan application, and the distributor will receive commissions. This is a key distinction between regular and direct plans.

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