NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
Which of the following is a function of the Registrar and Transfer Agent (RTA) of a mutual fund?
The RTA maintains unitholder records, processes purchases and redemptions, and dispatches account statements. It does not set investment objectives, approve offer documents, or audit the AMC, which are handled by the AMC, trustees, SEBI and auditors respectively.
- ASetting the investment objective of the scheme
- BMaintaining unitholder records and processing purchase and redemption transactions, and dispatching account statementsCorrect
- CApproving the offer document on behalf of SEBI
- DAuditing the AMC's accounts for the trustees
Explanation
The RTA maintains investor records, processes subscriptions and redemptions, and sends statements and communications. Investment objectives are set by the AMC and trustees in the offer document, SEBI reviews offer documents, and audits are done by auditors.
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