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

Which document authorizes a company to invest in a specific mutual fund scheme?

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Memorandum of Association

  2. B

    Articles of Association

  3. C

    Shareholder's resolution

  4. Specific Board resolution

    Correct answer

Why this is the answer

A company requires a Board resolution to authorize its investment in a mutual fund, as institutional investors invest on behalf of the organization.

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