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

In which of the following transactions a 'Transaction charge' can be deducted?

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

Options

  1. A

    Online purchases

  2. B

    Systematic transfer plan (STP) transaction

  3. Purchases of Rs 10,000 or more

    Correct answer

  4. D

    Purchase made on stock exchanges

Why this is the answer

SEBI allows a transaction charge to be deducted for investments of Rs 10,000 or more. This charge is meant to compensate the distributor for the services provided. It is not applicable for smaller investments or purchases made through stock exchanges.

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