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

If an investor claims his unclaimed redemption amount after 3 years, then the payment will be based on the Unclaimed Dividend Scheme’s ________ .

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

Options

  1. A

    average NAVs i.e. current NAV and NAV at the time of original redemption

  2. B

    current NAV

  3. NAV at the end of three years

    Correct answer

  4. D

    NAV at the time of original redemption

Why this is the answer

Recovery of unclaimed amounts by the investors is as follows: If the investor claims the money within 3 years, then payment is based on prevailing NAV, i.e., after adding the income earned on the unclaimed money. If the investor claims the money after 3 years, then payment is based on the NAV at the end of 3 years.

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NISM Series V A - Short Mock Test 3