- Introduction:
The NISM Series XIX-C exam assesses the knowledge and expertise of individuals involved in managing Alternative Investment Funds (AIFs) in India. This comprehensive exam aims to:
Establish a minimum knowledge benchmark for AIF Managers and their core investment teams.
Enhance the quality of AIF management activities.
Improve understanding of AIF products, regulations, and industry best practices.
- 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
- Eligibility:
The exam is open to anyone interested in the AIF domain. There are no specific educational prerequisites. However, the content is geared towards professionals working in the AIF industry, such as:
AIF Managers
Investment Team Members of AIFs
Individuals aspiring for careers in AIF Management
- Exam Fees:
The registration fee for the NISM Series XIX-C exam is currently Rs. 3,000 (subject to change).
- 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.
- Exam Syllabus:
Chapter 1: Investments Landscape
Chapter 2: Types of Investments
Chapter 3: Concept of Informational Efficiency
Chapter 4: Introduction to Modern Portfolio Theory
Chapter 5: Introduction to Capital Market Theory
Chapter 6: Alternative Investment Funds in India and its Suitability
Chapter 7: Alternative Investment Fund Ecosystem
Chapter 8: Alternative Investment Fund Structuring
Chapter 9: Fee Structure and Fund Performance
Chapter 10: Indices and Benchmarking
Chapter 11: Investment Strategies, Investment Process and Governance of Funds
Chapter 12: Fund Due Diligence – Investor Perspective
Chapter 13: Legal Documents and Negotiations
Chapter 14: Valuation
Chapter 15: Fund Monitoring, Reporting and Exit
Chapter 16: Taxation
Chapter 17: Regulatory Framework
- 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.
