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

The empanelment of a mutual fund distributor by an Asset Management Company can be terminated ______.

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

Options

  1. A

    In case all the investors of the distributors shift to direct plans

  2. B

    When the term of empanelment is over

  3. Any time by the AMC

    Correct answer

  4. D

    All of the above

Why this is the answer

The Asset Management Company (AMC) has the authority to terminate the empanelment of a mutual fund distributor at any time, with no need to wait for a specific event or the expiration of the contract.

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