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

What is required for the termination of the services of an Asset Management Company (AMC)?

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    75 % of the mutual funds distributors should approve the termination of the Asset Management Company

  2. 75 % of the unitholders should approve the termination of the Asset Management Company

    Correct answer

  3. C

    The custodian should approve the termination of the Asset Management Company

  4. D

    AMFI should approve the termination of the Asset Management Company

Why this is the answer

To terminate the appointment of an Asset Management Company (AMC), the approval of 75% of the unitholders of the mutual fund scheme is requireD) This ensures that the investors have a say in the decision-making process regarding the management of their investments.

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