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

AMCs have to put in place a due diligence process to regulate distributors who ______ .

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    have received commission of over Rs. 25 Lakhs from a single mutual fund

  2. B

    have raised AUM of over Rs. 25 crores from non-institutional investors

  3. have presence in more than 20 locations

    Correct answer

  4. D

    All of the above

Why this is the answer

SEBI mandates that AMCs must implement a due diligence process to regulate distributors who have a presence in more than 20 locations. Other criteria also apply but are different from this one.

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