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NISM Certificate Mandated for a Member of Key Investment Team of an AIF Manager May 13, 2024
Published in: Investment Funds
DISCLAIMER: The material contained in this publication is solely for information and general guidance and not for advertising or soliciting. The information provided does not constitute professional advice that may be required before acting on any matter. While every care has been taken in the preparation of this publication to ensure its accuracy, Vaish Associates Advocates neither assumes responsibility for any errors, which despite all precautions, may be found herein nor accepts any liability, and disclaims all responsibility, for any kind of loss or damage arising on account of anyone acting / refraining to act by placing reliance upon the information contained in this publication.
Securities Exchange Board of India (“SEBI”), vide its notification dated May 10, 2024, issued certification requirements for the key investment team of the manager of the Alternative Investment Fund (“AIF”). The said notification mandates that at least 1 key personnel, amongst the associated persons functioning in the key investment team of an AIF manager shall obtain certification from the National Institute of Securities Market (“NISM”) by clearing the NISM Series-XIX-C: AIF Fund Managers Certification Examination.
This notification underscores the regulatory framework established by the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 read with the SEBI (AIF) Regulations, 2012.
In this regard, SEBI, vide its circular dated May 13, 2024, further clarified that this requirement for obtaining NISM certification by at least 1 key personnel of the key investment team of an AIF manager shall be applicable as an eligibility criterion to all AIF registration applications and launch of AIF schemes filed after May 10, 2024.
The NISM certification requirement is to be complied with, on or before May 9, 2025, by the following:
The trustee/sponsor of AIF, as the case may be, shall ensure that the ‘Compliance Test Report’ prepared by the manager in terms of para 15.2 of SEBI’s Master Circular for AIFs dated May 7, 2024, should include compliance with the provisions of this circular.
To read the notification click here & to read the circular click here
For any clarification, please write to:
Mr. Yatin Narang
Partner
[email protected]
