Unit study guide · NISM Series II-B
Basics of Registrars and Transfer Agents
12 questions in this unit
What this unit covers
- What is a core function of a mutual fund registrar and transfer agent?
- Why must an RTA reconcile unit allotment records with accepted subscriptions?
- What is an investor folio in a mutual fund?
- An investor reports that a purchase is missing from the statement. What should the RTA check first?
- What is the main role of an Investor Service Centre operated by an RTA?
- What does an Official Point of Acceptance help establish?
- Why is accurate time stamping important when an RTA receives a mutual fund request?
- How do a depository and an RTA generally differ for dematerialised mutual fund units?
- An investor's demat holding and fund register show different units. Which action best protects record accuracy?
- Why are some RTAs classified as Qualified RTAs?
- An investor requests an updated bank mandate. Which role best fits the RTA?
- An RTA's investor database is unavailable during a redemption surge. Which concern is most immediate?
Key ideas
From the practice bank · 1
What is a core function of a mutual fund registrar and transfer agent?
An RTA maintains investor records and supports processing of mutual fund transactions.
Hint Think about who maintains investor accounts.
II-B-031From the practice bank · 2
Why must an RTA reconcile unit allotment records with accepted subscriptions?
Reconciling money received with units allotted helps detect missing or incorrect transactions.
Hint Consider what happens if cash and units are recorded differently.
II-B-032From the practice bank · 3
What is an investor folio in a mutual fund?
A folio is the record under which an investor's mutual fund holdings and transactions are tracked.
Hint Think of the account used for servicing holdings.
II-B-033From the practice bank · 4
An investor reports that a purchase is missing from the statement. What should the RTA check first?
The RTA should reconcile the specific application, payment status and unit-allotment records.
Hint Trace the transaction from request to payment to units.
II-B-034From the practice bank · 5
What is the main role of an Investor Service Centre operated by an RTA?
An Investor Service Centre provides a channel for investor transactions and service queries.
Hint Think about an investor-facing support point.
II-B-035From the practice bank · 6
What does an Official Point of Acceptance help establish?
An Official Point of Acceptance is an authorised place or channel for receiving transaction requests.
Hint Consider the documented arrival of an application.
II-B-036From the practice bank · 7
Why is accurate time stamping important when an RTA receives a mutual fund request?
A valid receipt time is important for applying the scheme's transaction and NAV rules.
Hint Think about the order in which requests arrive.
II-B-037From the practice bank · 8
How do a depository and an RTA generally differ for dematerialised mutual fund units?
Depositories maintain demat ownership accounts and RTAs coordinate fund records with them.
Hint Separate the demat account system from the fund register.
II-B-038From the practice bank · 9
An investor's demat holding and fund register show different units. Which action best protects record accuracy?
Reconciling underlying RTA and depository records before making an authorised correction preserves control evidence.
Hint Think about matching two independent records safely.
II-B-039From the practice bank · 10
Why are some RTAs classified as Qualified RTAs?
QRTAs are significant servicing intermediaries subject to enhanced monitoring and resilience expectations.
Hint Consider operational importance to the securities market.
II-B-040From the practice bank · 11
An investor requests an updated bank mandate. Which role best fits the RTA?
The RTA processes bank-mandate changes only after required checks and authorisation.
Hint Think of record updates and fraud prevention.
II-B-041From the practice bank · 12
An RTA's investor database is unavailable during a redemption surge. Which concern is most immediate?
Business continuity and recoverable transaction records are essential when critical RTA systems fail.
Hint Think about investor access and reliable record recovery.
II-B-042