NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Operational Aspects of Portfolio Managers
A PMS portfolio has 8,000 shares of a company at a market price of Rs 250 and the manager sells them, paying brokerage of 0.10% on the sale value and receiving the net proceeds. Which is the net amount credited to the client's account, ignoring all other charges?
The net credit is Rs 19,98,000. The sale value is 8,000 shares times Rs 250, which is Rs 20,00,000. Brokerage of 0.10% is Rs 2,000, and it is deducted from sale proceeds, leaving Rs 19,98,000.
- ARs 19,98,000Correct
- BRs 20,00,000
- CRs 20,02,000
- DRs 19,80,000
Explanation
Sale value = 8,000 x 250 = Rs 20,00,000. Brokerage at 0.10% = Rs 2,000. Net proceeds = 20,00,000 - 2,000 = Rs 19,98,000. Adding brokerage (Rs 20,02,000) is the sign error, and 19,80,000 uses 1% instead of 0.10%.
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