CH9 · 10 questions
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.