Investor Services

NISM Series V-D | 10 marks | Official workbook pages 171-230

What this chapter is about

Cover the complete transaction journey: NFO, applications, KYC, allotment, statements, cut-off time, payment realisation, systematic and non-financial transactions, nominees and service timelines.

Core concepts

• An NFO is the first subscription window for a scheme. The offer price does not by itself make a new scheme cheaper than an existing scheme.
• Applications must carry valid investor, bank, tax-status, nomination and KYC information together with an acceptable payment mode.
• Applicable NAV depends on transaction type, cut-off time and realisation or availability of funds under the rules for that scheme category.
• KYC identifies the investor and beneficial owner. For a minor, the guardian completes the required KYC and operates the folio until the minor attains majority.
• Systematic services include SIP, STP and SWP. Each automates a different flow: invest, transfer or withdraw.
• Non-financial transactions include changes to bank mandate, contact details, nomination, transmission, lien, pledge and other folio instructions.
• Account statements, consolidated statements and demat holdings follow different delivery and reporting channels.
• Turnaround times and unclaimed-asset processes are service obligations. Learn the workbook's current transaction-time table.

Exam focus

• Bonus units are allotted without a purchase price, but total scheme value is not created by the bonus.
• Foreign investors may invest subject to eligibility and KYC requirements.
• For a minor folio, the guardian's KYC is central to operation.
• A resident individual may register up to the number of bank accounts specified in the workbook; the sample question tests five.
• Ex-distribution NAV reflects the reduction after a distribution payout.

Quick revision - 60 second scan

• Validate investor, KYC, bank and payment.
• Check cut-off and fund realisation.
• Allot or redeem at applicable NAV.
• SIP invests, STP transfers, SWP withdraws.
• Service requests have prescribed documentation and timelines.