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

________ is prohibited as per the AMFI Code of Ethics.

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Inter-Scheme transfer of securities

  2. Front running in those securities in which the mutual fund is dealing

    Correct answer

  3. C

    Transaction in securities through associated brokers

  4. D

    Distribution of mutual fund schemes through Sponsor or its associates

Why this is the answer

Front running refers to the illegal practice of buying or selling securities based on confidential information about future transactions. This is prohibited by the AMFI Code of Ethics to maintain transparency and fairness.

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