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

An investor wishes to change the bank account registered against a folio for redemption payouts. Which is the most appropriate step as per normal operational practice?

The investor should submit a formal change of bank mandate request along with proof, such as a cancelled cheque or bank statement. This safeguards against fraud. An informal email to the distributor is not sufficient, and PAN has no connection with changing the bank account in a folio.

  1. ASubmit a change of bank mandate request with supporting proof such as a cancelled cheque or bank statementCorrect
  2. BSend an email to the distributor requesting the change, with no documents
  3. CRedeem units and wait for the AMC to guess the new account
  4. DOpen a new PAN with the new bank details

Explanation

AMCs require a formal change of bank mandate request with proof, such as a cancelled cheque bearing the investor's name or a bank statement, to prevent fraud. A distributor email alone is not valid, and PAN is unrelated to the bank account.

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