📊 NISM Series XXI-A Chapter 12 of 12 ⚖ 10 of 100 marks weightage

Ch.12: Regulatory, Governance and Ethical Aspects of Portfolio Managers

Practice questions for NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination, Chapter 12: Regulatory, Governance and Ethical Aspects of Portfolio Managers. This chapter pulls together the laws and codes that govern how portfolio managers and PMS distributors behave. It covers anti-money-laundering duties under PMLA, the insider trading code of conduct for designated persons, the ban on fraudulent and unfair trade practices, key provisions of the SEBI (Portfolio Managers) Regulations, 2020, the code of conduct for PMS distributors and the SEBI Investor Charter for PMS. Carries 10 out of 100 marks. The exam has 100 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

The record-keeping, reporting and enhanced due diligence duties PMLA places on SEBI intermediaries, including the ₹10 lakh cash transaction trigger.
How Schedule C of the insider trading regulations controls trading by designated persons through pre-clearance, restricted lists, execution windows and contra-trade bans.
Which acts the PFUTP Regulations, 2003 treat as fraudulent, manipulative or unfair.
The registration conditions, client-portfolio rules, investment limits, reporting duties and related-party consent rules under the SEBI (Portfolio Managers) Regulations, 2020.
The ethical code for PMS distributors, mandatory APMI registration, and what the SEBI Investor Charter for PMS promises investors.

Key Terms:PMLA reporting entityPrincipal OfficerEnhanced due diligence (Section 12AA)Designated personUnpublished price sensitive information (UPSI)Contra tradeChinese wallPFUTP RegulationsPrincipal officer (PM Regulations)Investor Charter

Free Sample Question

Q1MCQMediumPunishment section

Punishment for the offence of money laundering is provided in which section of PMLA?

ASection 12AA

✓Section 4

CSection 3

DSection 12

💡 Section 3 defines the offence, Section 4 provides the punishment, Section 12 sets out reporting entity obligations and Section 12AA covers enhanced due diligence.

79 more questions in this chapter

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About this content: These practice questions are written by BullWiser from the syllabus of the NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination, using the workbook published by the National Institute of Securities Markets (NISM), Mumbai (September 2025 edition) as the fact source. NISM is a SEBI-established institution. Questions cover Chapter 12: Regulatory, Governance and Ethical Aspects of Portfolio Managers with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or APMI. Last updated: September 30, 2026.

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