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Which of the following statements about a Registrar and Transfer Agent is correct?
A{'text': 'It maintains investor folios and processes unit transactions', 'label': 'A'}
B{'text': 'It signs the annual audit report of the mutual fund scheme', 'label': 'B'}
C{'text': 'It certifies the daily Net Asset Value of every scheme', 'label': 'C'}
D{'text': 'It appoints the Board of Trustees of a mutual fund trust', 'label': 'D'}
Answer & Solution
Correct answer: A. {'text': 'It maintains investor folios and processes unit transactions', 'label': 'A'}
1. The RTA runs investor service centres for the mutual fund.
2. It processes purchases, redemptions and switches; handles receipts and payouts.
3. It updates the unit capital and the individual investor folio after each transaction.
4. The audit is signed by auditors and the NAV is certified by fund accounting, not the RTA.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.4.2_
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