Distributor (an intermediary) plays a very important and valuable role in promoting sales of Mutual Fund Products. In addition to increase the sales for Mutual Fund products, he also provides advisory services to his clients which are very vital for their goal oriented investments. This is the reason why the Mutual Fund distributors should have the highest standards of knowledge, attitude and ethics.
Both Securities and Exchange Board of India (SEBI)and Association of Mutual Funds in India (AMFI) have played a major role in this regard. They made it mandatory to obtain a mutual fund distribution certification that aims to enhance the quality of sales, distribution and related support services in the mutual fund industry.
About National Institute of Securities Markets (NISM) Certification
An examination will be conducted by NISM and upon clearing that exam, one will obtain the certification. The examination consists of 100 questions of 1 mark each and its duration is 2 hours. The passing score for the examination is 50%. There is no negative marking.
The main objectives behind the exam are:
Therefore, all those who want to get engaged in marketing and selling of Mutual Fund schemes are required to:
After above process is over, the intermediary has to get himself empanelled to each Mutual Fund House separately, with which he wants to work for.
Following documents are required by the MF house for empanelment:
2018 October 24 is a bank holiday in Andaman And Nicobar Island due to Lakshmi Puja/Maharshi Valmiki Jayanthi.
2018 October 27 is a bank holiday in Himachal Pradesh due to Karva Chauth.
2018 October 31 is a bank holiday in Sikkim due to Lhabab Duechen.
2018 November 01 is a bank holiday in Karnataka due to Kannada Rajyostsava/Kut.
2018 November 06 is a bank holiday in Andaman And Nicobar Island due to Diwali Amavasaya (Laxmi Pujan).
2018 November 06 is a bank holiday in Arunachal Pradesh due to Kali Puja/Diwali/Naraka Chaturdashi.