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NISM Exam for AIF Fund Managers

Navigate AIF helps you prepare for the NISM Series XIX-C Alternative Investment Fund Managers exam, aimed at fund managers. This exam covers the broader aspects of AIF management, including regulatory compliance, fund operations, investor relations, and performance analysis. Passing these exams is a testament to a professional's expertise and commitment to maintaining high standards in the AIF sector

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Introduction to the NISM Exam

The National Institute of Securities Markets (NISM) is a public trust established by the Securities and Exchange Board of India (SEBI). NISM conducts certification examinations for various segments of the Indian securities market, aimed at creating a standardized knowledge base and enhancing the quality of services provided in the market.

The Securities and Exchange Board of India (SEBI), vide its circular dated 13 May 2024 (link here), has mandated that the requirement for at least one key personnel of the key investment team of manager of an Alternative Investment Fund (AIF), registered in India, to obtain the NISM Series XIX-C: Alternative Investment Fund Managers exam certification.

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Requirement

The requirement will be applicable as an eligibility criterion to all the applications for registration of AIFs and launch of schemes by AIFs filed after May 10, 2024.

The requirement of obtaining the certification shall be complied with on or before May 09, 2025, for the following:

  • Existing schemes of AIFs; and,
  • Schemes of AIFs whose application for launch of scheme pending with SEBI as on May 10, 2024.

The NISM Series XIX-C: Alternative Investment Fund Managers exam aims to establish a foundational knowledge standard for AIF Managers and their key investment teams. It focuses on improving the quality of fund management by ensuring a thorough understanding of AIF product features, investment valuation standards, governance processes, performance metrics, taxation, and related regulations

Key objectives of the NISM AIF certification

Ensure that upon successful completion of the exam, the applicant needs to:

  • Have a basic understanding of the different investment kinds and the landscape of investments (conventional and alternative asset classes)
  • Recognize the ideas behind capital market theory, modern portfolio theory, and informational efficiency.
  • Gain a thorough understanding of the following in relation to handling AIFs:
  • AIF ecosystem, including the functions of its numerous service providers; -Suitability of AIF products and their role in portfolio diversification
  • The role of AIF managers and their senior management group in handling conflict of interest, managing funds, and other fund management responsibilities.
  • Fund structure, fee structure, methods and interpretations of performance measuring, significance and function of performance benchmarking
  • The different investment techniques used, the procedures for doing due diligence on investments, and the governance structure that investors adhere to in AIFs
  • The AIFs' code of conduct, the manager of the AIFs, the key management team, etc.
  • The necessity of stakeholder negotiations and the legal documents required in the AIF area.
  • The methods of valuation employed, the function of third-party registered valuers, fund supervision, and reporting
  • AIFs have a variety of exit possibilities; -The fund and its investors have a variety of taxes features
  • Be familiar with the regulatory framework in India where AIFs operate, including the SEBI (AIF) Regulations, FEMA, PMLA, SEBI (PIT) Regulations, SEBI (PFUTP) Regulations, and so on.
Navigate Your Way to Success

NISM Exam for AIF Fund Managers

Navigate AIF helps you prepare for the NISM Series XIX-C Alternative Investment Fund Managers exam, aimed at fund managers

Enroll Now

Assessment Structure

Multiple Choice Questions [90 questions of 1 mark each]90*1=90
Case-based Questions [6 cases (each case with 5 questions of 2 mark each)]6*5*2=60

The total marks available are 150, and candidates must achieve 60% (90 marks) to pass. The exam duration is 3 hours.

A penalty of 25% of the question’s marks is applied for incorrect answers.

The certification is valid for 3 years from the date of passing the exam.

Obtaining the NISM AIF certification is crucial for professionals seeking to establish or enhance their careers in the alternative investment fund industry in India. It not only validates their expertise but also enhances their credibility and professional standing in the market.