Mutual fund units can be transacted on the platforms of stock exchanges like NSE and BSE. What is the role of the stock exchange in these transactions?
A
They act as the Registrar and Transfer Agent (RTA).
B
They provide a transaction platform but do not replace the RTAs.
C
They offer settlement guarantees for all transactions.
D
They list mutual fund schemes as equity shares.
Correct Option:
B
Explanation
Stock exchanges such as NSE and BSE provide an electronic platform for mutual fund transactions. However, they do not replace the Registrar and Transfer Agent (RTA), which continues to maintain investor records, process transactions, and provide related services.
