NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
Which statement about the AMFI Registration Number (ARN) for mutual fund distributors is correct?
A distributor must quote the ARN on transactions routed through them. The ARN is issued by AMFI after the distributor passes the certification, applies to individuals and entities alike, and must be renewed periodically, so it is not permanent.
- AIt is issued by SEBI directly to every distributor
- BIt is required to be mentioned on transactions routed through the distributorCorrect
- CIt is needed only for corporate distributors, not individuals
- DIt is permanent and never needs renewal
Explanation
AMFI issues ARN to distributors who have passed the required certification, and the ARN must be quoted on applications routed through them. It is issued by AMFI rather than SEBI, applies to individuals as well, and has a validity period requiring renewal.
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 statement about the Statement of Additional Information (SAI) of a mutual fund is correct?
- Under the SEBI (Mutual Funds) Regulations, which of the following is the regulator that registers mutual funds in India?
- 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?
- As per SEBI regulations, what is the position on an AMC charging entry load to investors in mutual fund schemes?