NISM Series XIX-C: Alternative Investment Fund Managers

The examination seeks to create a common minimum knowledge benchmark for AIF Managers and its key investment team. The examination focuses to enhance the quality of fund management activities in the AIF space and enables a better understanding of features of AIF products, investment valuation norms, fund governance processes, fund performance measurements, taxation aspects and related regulations.

Examination Objectives

On successful completion of the examination the candidate should:

• Know briefly about the investment landscape and various types of investments (traditional and alternative asset classes)

• Understand the concepts of Informational Efficiency, Modern Portfolio Theory and Capital Market Theory.

• Understand the following in detail pertaining to managing of AIFs:
-Suitability of AIF products and its role in portfolio diversification
-AIF ecosystem, role of its various service providers
-Role of Managers of AIFs and their key management team in performing fund management duties, governance of funds, managing conflict of interests etc.
-Fund structure, fee structure, performance measurement techniques and its interpretations, importance and role of performance benchmarking
-Various investment strategies involved, investment due diligence processes and governance structure in AIFs followed by investors
-Code of Conduct of AIFs, Manager of AIFs and their key management team etc.
-Legal documentations involved and importance of negotiations among stakeholders in AIF domain.
-Valuation techniques used, role of third-party registered valuers, fund monitoring, reporting
-Various exit options available to AIFs
-Various taxation aspects for the fund and its investors

• Know the regulatory environment in which the AIFs operate in India such as SEBI (AIF) Regulations, FEMA, PMLA, SEBI (PIT) Regulations, SEBI (PFUTP) Regulations etc.

Assessment Structure

The examination consists of 90 multiple-choice questions and 6 case-based questions (each case having 5 sub-questions). The assessment structure is as follows:

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 examination should be completed in 3 hours. The passing score for the examination is

60% i.e. 90 marks out of 150. There shall be negative marking of 25 percent of the marks assigned to a question.

Test Details

Name of Module: NISM Series XIX-C: Alternative Investment Fund Managers Certification Examination

~ 90 multiple choice questions of 1 mark each and 6 caselets with 5 multiple choice questions of 2 mark each (Total 120 questions adding up to 150 marks).

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.