NISM Series II-B (RTA Mutual Fund) key terms

A SEBI-registered intermediary appointed by a mutual fund to maintain unitholder records, process transactions, and service investors on the fund's behalf.

The authoritative record of who holds how many units in a scheme, including folio numbers, lien markings, and nominee details, maintained by the RTA.

A unique identifier issued to an investor for holdings within a scheme, used to link all transactions, statements, and service requests to that account.

A single reference number consolidating an investor's folios across schemes and fund houses on a common transaction platform, simplifying purchases and statements.

The per-unit value of a scheme, computed as total assets minus liabilities divided by units outstanding, and the price basis for allotment and redemption.

The NAV of the scheme on the day a valid transaction is received within cut-off, determined by the timing and realisation of funds rules.

The daily deadline, generally 3:00 p.m. for most schemes, after which a transaction is treated as received on the next business day for NAV purposes.

Recording the exact date and time a purchase or redemption request is received at an official collection point, which fixes the applicable NAV.

A day on which banks and the fund's offices are open for normal transactions, excluding weekends and notified holidays, used to compute NAV applicability and payout timelines.

The mandatory identity and address verification process for investors before a folio can be opened or transactions processed, performed through SEBI-registered KYC Registration Agencies.

A SEBI-registered entity that stores investor KYC records centrally so intermediaries can verify and share a single validated KYC status.

A step in KYC where the investor's identity is physically or digitally verified against original documents by an authorised person, often the distributor or fund official.

The rule requiring a Permanent Account Number for most mutual fund purchases and for any folio, with limited exemptions such as certain micro-investment and government schemes.

An individual entrusted with prominent public functions, or a close associate or family member, who attracts enhanced due diligence under anti-money-laundering norms.

The set of controls, including client screening, monitoring, and suspicious transaction reporting, that an RTA and fund must apply to prevent misuse of the fund channel.

A confidential report filed with the Financial Intelligence Unit when an intermediary detects transactions that appear linked to money laundering or terrorist financing.

Heightened identity checks and ongoing monitoring applied to higher-risk customers such as PEPs, non-face-to-face investors, or those from high-risk jurisdictions.

A facility letting a unitholder designate a person to receive the units on death, avoiding probate; nomination can be opted out only with a signed declaration.

The process of transferring units to legal heirs or nominees on the death of a unitholder, requiring specified documents such as a death certificate and succession proof.

A restriction recorded against units in a folio, often at the request of a lender or court, preventing redemption or transfer until the lien is removed.

A temporary block on debits or credits in a folio, applied on regulatory or court direction or at the investor's request, pending resolution of an issue.

A periodic record sent to unitholders showing transactions, unit balances, and NAV-based valuations, with a consolidated version covering multiple folios.

A single statement covering all mutual fund folios of an investor across fund houses, issued periodically and on request, often by email.

A facility for investing a fixed amount at regular intervals in a scheme, with each instalment processed as a separate purchase at that day's applicable NAV.

A facility allowing periodic redemption of a fixed amount or units from a folio until the balance or instruction period is exhausted.

An authorisation given by an investor to a bank or payment system to debit a specified amount periodically for SIP instalments, subject to registration and validity rules.

A request to halt future SIP instalments or debit mandates on a folio, which must be actioned before the next instalment is presented for clearing.

The maximum period within which proceeds of a redemption must be paid to the unitholder, generally three working days for most open-ended schemes.

A charge levied on purchases of certain schemes, now largely prohibited for direct and regular plans of open-ended schemes under current rules.

A charge deducted from redemption proceeds if units are redeemed within a stated period, credited back to the scheme's assets and disclosed in the scheme documents.

The annual percentage of a scheme's average net assets charged as expenses, subject to regulatory ceilings that vary by scheme type and asset size.

The primary offer document of a mutual fund scheme, disclosing investment objective, strategy, risks, loads, expenses, and investor rights.

A concise summary document accompanying the application form that highlights key scheme features, risk factors, and investor service details.

The SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, which prescribe registration, eligibility, conduct, and record-keeping standards for RTAs.

The standards of fair dealing, confidentiality, and diligence that RTAs and mutual funds must follow, including avoidance of conflicts and timely investor servicing.

The structured process for logging, escalating, and resolving investor complaints within prescribed timelines, with records maintained for regulatory inspection.

SEBI's online complaint redressal system where investors can lodge grievances against listed intermediaries, with action tracked and reported by the entity.

An independent authority under the integrated financial ombudsman framework that hears investor complaints against regulated entities after internal redressal fails.

The obligation to preserve transaction records, KYC documents, and correspondence for specified periods, in accessible form, for audit and regulatory inspection.

A periodic independent review of an RTA's or fund's operations and controls, conducted by a qualified auditor, with findings reported to management and the board.