Topics covered The NFO process, Account statements, Investment Plans and Services, Direct plans and regular plans, One-Time Mandate (OTM), Cut-off Time, Time Stamping etc
1. What needs to be approved by the Trustees and the Board of Directors (BoD) of the Asset Management Company (AMC) during the NFO process?
A. Market situation
B. Advertising campaigns
C. Scheme Information Document (SID)
D. Unique features of the scheme
2. Who makes observations on the SID, and their incorporation is necessary before issuing it in the market?
A. Market intermediaries
B. Board of Directors (BoD)
C. Securities and Exchange Board of India (SEBI)
D. Chief Marketing Officer (CMO)
3. What is an essential consideration when deciding on a suitable timetable for the NFO issue?
A. Advertising code compliance
B. Market situation
C. Unique features of the scheme
D. Investors’ benefits
4.When does an investor have to pay the NFO Price?
a. During the ongoing purchase
b. During redemptions
c. During switch-outs
d. During the New Fund Offer period
5.What does the ongoing price represent in the context of mutual funds?
a. Price for switch-outs
b. Price for redemptions
c. Price for new subscriptions
d. Price per unit during the NFO
6. When is the ongoing price applicable for investors?
a. During the New Fund Offer period
b. Only during redemptions
c. Only during switch-outs
7. Why was the dividend option renamed to Income Distribution cum capital withdrawal?
a. To attract more investors
b. To reflect the actual situation about the income earned by the investor
c. To simplify the naming convention
d. To increase the portfolio returns
8. What is the name of the option that allows reinvestment of income distribution cum capital withdrawal?
a. Dividend Distribution
b. Income Distribution cum capital withdrawal
c. Growth
d. Reinvestment
9. What is the key change in the naming convention of the option as of April 1, 2021?
a. Addition of “Re-investment” to the name
b. Addition of “cum capital withdrawal” to the name
c. Addition of “Option” to the name
d. Removal of “dividend” from the name
10. For applicants quoting a demat account, how long does it take to credit units to their account after the closure of the NFO?
a. 1 working day
b. 2 working days
c. 3 working days
d. 5 working days
11. What approval is required for the allotment of units and despatch of allotment advice to Foreign Portfolio Investors (FPIs)?
a. SEBI approval
b. RBI approval
c. Trustee approval
d. Depository approval
12. What entitlement do investors applying in non-depository mode have after the closure of the NFO Period?
a. Credit to the demat account
b. Account statement of units within 5 Business Days
c. Allotment advice within 3 business days
d. Instant allotment
13. For applicants applying through the ASBA mode, when is the investor’s account debited after the intimation of allotment by CAMS to the banker?
a. Before intimation
b. On the day of intimation
c. After 2 working days
d. On the closure of the NFO Period
14. What is the price at which units are sold to an investor in an ongoing sales scenario in an open-end scheme?
a. Entry load
b. Sale price
c. Applicable NAV
d. Face value
15.What information does the Monthly Statement of Account provide for each transaction?
a. Only the closing balance
b. Value of the transaction, relevant NAV, and number of units transacted
c. Only the annual closing balance
d. Number of units held in the folio
16.In the context of the Annual Account Statement, when are account statements generated for Unit-holders who have not transacted in the last six months?
a. Quarterly
b. Monthly
c. Annually
d. Biannually
Answers.
- C. Scheme Information Document (SID)
- C. Securities and Exchange Board of India (SEBI)
- B. Market situation
- d. During the New Fund Offer period
- c. Price for new subscriptions
- d. During ongoing purchase, redemptions, and switch-outs
- b. To reflect the actual situation about the income earned by the investor
- b. Income Distribution cum capital withdrawal
- b. Addition of “cum capital withdrawal” to the name
- b. 2 working days
- b. RBI approval
- b. Account statement of units within 5 Business Days
- d. On the closure of the NFO Period
- b. Sale price
- b. Value of the transaction, relevant NAV, and number of units transacted
- c. Annually
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