Multiple choice

Mutual Fund agents/distributors are not allowed to

  1. sell financial products other than mutual funds

  2. sell schemes of more than one mutual fund

  3. pass back the commissions earned to the investors

  4. work anywhere else
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SEBI regulations prohibit mutual fund distributors from passing back commissions to investors as this creates unfair inducement and distorts investment decisions. Distributors can sell multiple mutual funds and other financial products, and can have other employment.

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