Skip to content

NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Regulatory, Governance and Ethical Aspects of Portfolio Managers

Which of the following best describes a feature of the PMS distributor's regulatory obligations under SEBI's framework for portfolio managers?

PMS distributors must hold a valid NISM certification and follow the prescribed code of conduct. They cannot accept client funds into their own accounts, and fees must be disclosed transparently rather than charged arbitrarily.

  1. ADistributors need not hold a valid NISM certification
  2. BDistributors must hold valid NISM certification and follow the code of conductCorrect
  3. CDistributors may charge the client any upfront fee
  4. DDistributors may accept client funds directly in their own account

Explanation

Distributors of PMS must pass the NISM Series XXI-A certification and adhere to the prescribed code of conduct. Accepting client funds into their own account is not allowed.

Did you get it right without looking?

One question tells you little. A timed set on Regulatory, Governance and Ethical Aspects of Portfolio Managers shows your real accuracy, how long you take and where you lose marks.

Practise Regulatory, Governance and Ethical Aspects of Portfolio ManagersFree diagnostic mock

More Regulatory, Governance and Ethical Aspects of Portfolio Managers questions