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