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

On what basis will the payment be made to an investor who claims his erstwhile unclaimed redemption amount within three years?

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The amount paid will be based on the prevailing NAV after adding the income earned on the unclaimed profits

    Correct answer

  2. B

    The amount paid will be based on the NAV at the time of original redemption plus income earned on the unclaimed amount

  3. C

    The amount paid will be based on the NAV at the time of original redemption plus income earned on the unclaimed amount and deducting any penalty on the same

  4. D

    The amount paid will be based on the average of the NAV at the time original redemption and today's NAV after accounting for income earned and penalty if any

Why this is the answer

If an investor claims the unclaimed redemption amount within 3 years, the payment is made based on the prevailing NAV, which includes any income earned on the unclaimed amount.

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