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

Which of these mutual fund distributors have to mandatorily go through the due diligence process as mandated by SEBI?

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

Options

  1. A

    Distributors who get investments of over Rs. 1 crore in a single mutual fund

  2. Distributors who receive commission over Rs. 50 lakhs from a single mutual fund

    Correct answer

  3. C

    Distributors who service less than 25 investors

  4. D

    All of the above

Why this is the answer

SEBI mandates a due diligence process for distributors who either receive over Rs. 50 lakhs in commission from a single mutual fund or meet other criteria such as having multiple points of presence or large assets under management (AUM).

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