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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services

A unit holder who has a folio with a single holder wants to change the bank mandate registered for redemption payouts. Which is the most appropriate practice?

The investor should submit a signed written request with supporting documents such as a cancelled cheque or bank statement, following the fund's procedure. Verbal requests via a distributor are not valid, a new folio is unnecessary, and no waiting until the next financial year is required.

  1. ASubmit a written change request with supporting proof such as a cancelled cheque or bank statement, as per the fund's procedureCorrect
  2. BAsk the distributor to change it verbally
  3. COpen a new folio, as bank details can never be changed
  4. DWait until the next financial year for the change to be accepted

Explanation

Funds require a signed request for change of bank details with proof, such as a cancelled cheque leaf bearing the investor's name or a bank statement, to prevent fraud. A verbal instruction to a distributor is not valid. Bank details can be changed in an existing folio and no waiting period applies.

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