n NISM Certifications
X NISM Series X
Medium

The residential status of a Hindu Undivided Family (HUF) with members in India and abroad, where senior members in Australia take management decisions and have been non-resident for most of the last 10 years, is classified as Non-Resident based on control and management outside India.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Resident

  2. Non-Resident

    Correct answer

  3. C

    Ordinarily Resident

  4. D

    Not-Ordinarily Resident

Why this is the answer

An HUF is deemed non-resident if its control and management are situated wholly outside India; here, decision-making is outside India, thus classifying it as Non-Resident.

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