Ch.6 · Distributor Commission Structure · medium
Which of the following correctly describes the commission disclosure requirement in investor account statements?
0% of students got this wrong
EXPLANATION
SEBI mandates that the CAS and individual account statements must disclose the commission (both absolute rupee amount and percentage) paid to the distributor. This transparency in investor communications allows investors to understand the cost of using a distributor and evaluate whether the service received justifies the cost.
Practising Chapter 6 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.