n NISM Certifications
VII NISM Series VII
Medium

The stock broker can declare upfront whether the subscription/redemption request of Mutual Fund units would be settled in ______.

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

Options

  1. A

    Physical mode

  2. B

    Depository mode

  3. Either 1 or 2

    Correct answer

Why this is the answer

Brokers facilitating mutual fund transactions must specify at the time of order whether settlement will occur in physical mode (through Statement of Account) or depository mode (credited to the demat account), ensuring transparency in transaction processing.

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