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

Which entity processes the purchase and redemption transactions of investors of an open-ended fund?

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The Custodian

  2. B

    The Broker / Mutual Fund Agent

  3. C

    AMFI

  4. The R & T Agent

    Correct answer

Why this is the answer

The Registrar and Transfer Agent (RTA) is responsible for processing the purchase, redemption, and switch transactions, maintaining records of investors, and managing unit allotment or redemption. The custodian is responsible for safekeeping of securities, while AMFI is the industry body for mutual funds.

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