n NISM Certifications
X NISM Series X
Medium

Under FEMA, only the Indian-incorporated companies are considered residents in India. Therefore, Super Shine Ltd (Indian company) and Glow Shine Ltd (Indian subsidiary) are residents, whereas High Shine Ltd (foreign-incorporated) is not.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only Super Shine Ltd and High Shine Ltd

  2. Only Super Shine Ltd and Glow Shine Ltd

    Correct answer

  3. C

    Only Super Shine Ltd

  4. D

    All three companies

Why this is the answer

Resident status depends on incorporation in India.

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