📊 NISM Series V-D Chapter 3 of 22 ⚖ 3 of 150 marks weightage

Ch.3: Legal Structure of Mutual Funds in India

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 3: Legal Structure of Mutual Funds in India — covering the Trust Deed and other key legal documents, Sponsor eligibility criteria, Board of Trustees composition and independence, powers/duties/responsibilities of Trustees, AMC board composition and restrictions, and the role of ancillary service providers like the Custodian and RTA. Carries 3 out of 150 marks. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

The Trust Deed and other key legal documents governing a mutual fund's structure
Sponsor's eligibility criteria, role and responsibilities
Board of Trustees — composition, independence requirements, and their powers, duties and responsibilities
Asset Management Company (AMC) board composition, inter-entity restrictions, and responsibilities
Role of ancillary service providers — Custodian and Registrar and Transfer Agent (RTA) — including appointment and liability

Key Terms:Trust DeedSponsorBoard of TrusteesIndependent TrusteeAMC BoardCustodianRegistrar and Transfer Agent (RTA)Fit and Proper CriteriaInter-entity RestrictionsSEBI (Mutual Funds) Regulations, 1996

Practice Questions

25 more questions in this chapter

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About this content: These practice questions are based on the NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination Workbook published by the National Institute of Securities Markets (NISM), Mumbai (March 2026 edition). NISM is a SEBI-established institution. Questions cover Chapter 3: Legal Structure of Mutual Funds in India with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 24, 2026.

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← Ch.2: Concept & Role of a Mutual Fund Ch.4: Legal and Regulatory Framework →