n NISM Certifications
X NISM Series X
Medium

Which statements correctly describe the procedure for discontinuing benefits under the Accredited Investors Framework?

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investors who withdraw after availing lower investment ticket sizes must increase their minimum investment as per SEBI regulations

  2. B

    Withdrawals before the expiry of the client agreement are grandfathered, so investments continue as made by accredited investors

  3. Both A and B

    Correct answer

  4. D

    None of the above

Why this is the answer

Investors can withdraw consent, but if they do so after availing concessions, they must increase their minimum investment; prior investments are grandfathered if withdrawn before agreement expiry.

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