Fit and proper due diligence
The AMC's assessment at empanelment and on review — business model and proficiency, record of levies, fines, penalties, suits and customer compensation, review of associates and subsidiaries, and organisational controls…
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Execution only platformA SEBI-recognised digital platform that carries out subscription, redemption and switch transactions in direct plans of mutual fund schemes only — registered with AMFI (Category 1) or as a stock broker (Category 2).
- Mis-sellingSelling securities or securities services by knowingly making a false statement, hiding material facts or risk, or not taking reasonable care that the product suits the buyer — an unfair trade practice.
Where this is taught
Free preparation for NISM Series V-D← All terms