NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
Which of the following best describes the purpose of AMFI's Code of Conduct for intermediaries?
AMFI's Code of Conduct prescribes ethical and professional standards that distributors must follow while dealing with investors, such as due diligence, fair disclosure and avoiding misleading claims. It does not set returns, NAVs or tax benefits.
- AIt sets the maximum return a scheme may offer
- BIt prescribes ethical and professional standards for distributors in dealing with investorsCorrect
- CIt fixes the NAV of schemes daily
- DIt grants tax exemptions to distributors
Explanation
AMFI's Code of Conduct lays down standards of ethical and professional behaviour such as fair dealing, disclosure and due diligence. It does not fix returns, NAV or tax treatment.
Did you get it right without looking?
One question tells you little. A timed set on Legal and Regulatory Framework shows your real accuracy, how long you take and where you lose marks.
More Legal and Regulatory Framework questions
- Which of the following is a statement consistent with SEBI's regulations on mutual fund advertisements?
- Under SEBI regulations, which of the following is permitted as an investment or activity for a mutual fund?
- As per the SEBI regulations, which of the following statements about the role of the trustees of a mutual fund is correct?
- Under the SEBI (Mutual Funds) Regulations, which body is responsible for holding the assets of a mutual fund scheme in safe custody on behal…
- Which of the following is a function of the Registrar and Transfer Agent (RTA) of a mutual fund?
- As per the SEBI (Mutual Funds) Regulations, which of the following is a requirement relating to the sponsor of a mutual fund?