NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
A unitholder has an SIP folio and wants to stop the SIP. Which statement is correct about SIP cancellation?
The investor submits a cancellation request to the AMC or registrar, observing the required notice before the next instalment date. Units already allotted through earlier instalments remain with the investor; only future debits stop. There is no compulsion to complete the original tenure.
- AThe units already allotted are cancelled and the amount refunded
- BThe investor submits an SIP cancellation request to the AMC or RTA within the notice period, and units already allotted stay with the investorCorrect
- CThe SIP can be stopped only after completing the full tenure
- DOnly the distributor can stop the SIP by informing the bank
Explanation
Stopping an SIP is done by a written or online cancellation request with the AMC or RTA, usually with a notice period of a few days before the next instalment. Units already allotted remain the investor's property and are not cancelled.
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