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

In which of these funds is Securities Transaction Tax (STT) not charged?

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Fixed Maturity Plans (FMPs)

    Correct answer

  2. B

    Equity index ETFs

  3. C

    ELSS Equity Linked Savings Scheme

  4. D

    Blue chip equity funds

Why this is the answer

STT is not charged on Fixed Maturity Plans (FMPs) as they are close-ended debt funds, whereas it is applicable to equity funds and equity ETFs.

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