NISM Certification Requirements Before Launching an Alternative Investment Fund (AIF)

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Understanding Mandatory Examinations for AIF Managers & Compliance Officers

The Securities and Exchange Board of India (SEBI), through various circulars and the National Institute of Securities Markets (NISM), has prescribed mandatory certification requirements for key personnel involved in the management and compliance of Alternative Investment Funds (AIFs). These certifications ensure that fund managers and compliance professionals possess adequate regulatory, operational, and risk management knowledge before managing investor capital.

This article explains which NISM examination is required for which role and for which category of AIF, and why these certifications are mandatory before commencing AIF operations.

1. Certification Requirements for AIF Fund Managers / Key Investment Team

A. Category I & Category II AIFs

Applicable Examination:
✅ NISM-Series-XIX-D: Category I and II Alternative Investment Fund Managers Certification Examination

Applicable To:

·       Key Investment Team Members of Category I and Category II AIFs

 

B. Category III AIFs (Hedge Funds / Complex Strategies)

Applicable Examination:


✅ NISM-Series-XIX-E: Category III Alternative Investment Fund Managers Certification Examination

Applicable To:

·       Key Investment Team Member of Category III AIFs

2. Certification Requirement for AIF Compliance Officers

Mandatory for All Categories of AIFs (Category I, II & III)

Required Certification:
✅ NISM-Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination

Regulatory Reference:
As per NISM Communiqué No. NISM/Certification/Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination /2025/01 dated November 20, 2025.

Who Must Pass This Exam?

·       Compliance Officer of the AIF Manager (mandatory)

3. Summary Table – Who Needs Which Exam

Role

AIF Category

Mandatory NISM Certification

Key Investment Team Member

Category I & II

NISM-Series-XIX-D

Key Investment Team Member

Category III

NISM-Series-XIX-E

Compliance Officer (All AIFs)

Category I, II & III

NISM-Series-III-C

 

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