NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal Structure of Mutual Funds in India
Which entity is responsible for safekeeping the securities of a mutual fund scheme and delivering them on settlement of trades?
The custodian safeguards the securities owned by mutual fund schemes and handles their delivery and receipt on settlement. RTAs maintain unit holder records, auditors verify accounts, and sponsors set up the fund, so they do not perform this function.
- ACustodianCorrect
- BAuditor
- CRegistrar and transfer agent
- DSponsor
Explanation
The custodian holds the securities of schemes in safe custody and handles settlement-related delivery and receipt. The RTA maintains unit holder records, the auditor audits accounts, and the sponsor only sets up the fund.
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