n NISM Certifications
X NISM Series X
Medium

When an AIF makes a material change to its PPM that adversely impacts investors, the regulation mandates offering an exit option to protect investor interests and ensure transparency.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Reverse the change immediately

  2. Offer an exit option to investors

    Correct answer

  3. C

    Wind up the fund

  4. D

    Terminate agreements with investors

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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