NISM Chapter 3

Who are considered to be beneficiaries of Mutual Fund Trust

• The employees of the Asset Management Company

• The mutual fund distributors

• Unit holders

• Trustees of the mutual fund

Investors do not have the privilege to transact in mutual fund through stock exchanges. State True or False.

• True

• False

KYC procedure is mandatory for all investors in each and every mutual fund scheme in India. State True or False.

• True

• False

The auditor appointed to audit the mutual fund scheme accounts needs to be ____ from the auditor of the AMC.

• Same

• Different

• Provisioned

• Banker

With which agency are the mutual fund distributors registered?

• Securities and Exchange Board of India

• Fund Accounting Team

• Depositories

• Association of Mutual funds in India

At least ___ of the directors should be independent directors. i.e. not associated of or associated with the sponsor or any of its subsidiaries or the trustees.

• 30 calendar days

• 50 percent

• Half yearly

• 4 trustees

____ is executed between the sponsors and the trustees.

• Board of Trustees

• Sponsors

• Trust Deed

• Custodian

____ tracks corporate actions such as dividends, bonuses and rights in companies where the fund has invested.

• AMC

• SEBI

• Custodian

• Compliance Function

Who handles the day-to-day Management of the mutual fund?

• Asset Management Company

• Registrar and Transfer Agency

• Mutual Fund Trustees

• UnitHolders

The sponsors Will have to appoint at least ___.

• 50 percent

• 30 calendar days

• 4 directors

• 10 crore