NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
An investor wants to redeem units from a folio held in the name of 'Mr. Rao and Mrs. Rao' with the mode of holding as 'Anyone or Survivor'. Mr. Rao signs the redemption request alone. What is the likely result?
The request is valid because under an 'Anyone or Survivor' mode of holding, any one joint holder can sign and operate the folio. Only under 'Joint' holding must all holders sign. The distributor's countersignature is irrelevant, and no conversion to single holding is required.
- AThe request is valid, as either holder can sign alone under the 'Anyone or Survivor' modeCorrect
- BThe request is rejected because every joint holder must always sign
- CThe request is valid only if the distributor countersigns it
- DThe request is valid only after the folio is converted into a single holding
Explanation
In an 'Anyone or Survivor' holding, any one holder may operate the folio, so redemption signed by Mr. Rao alone is valid. Joint mode would require all holders to sign. A distributor's countersignature has no role in validity.
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