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

No redemption or subscription is allowed in a Segregated Portfolio. Is this statement True or False?

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

A Segregated Portfolio is created when a mutual fund faces a credit event affecting a specific debt instrument. In such portfolios, no redemption or subscription is allowed directly. However, the units of the segregated portfolio can be listed on a stock exchange to facilitate exit options for investors.

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