NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors Certification

Mode of Delivery: Online Live Interactive + Online Self-paced*

Duration: 24 Hours 

Study Materials: 

• Recording available of online live sessions (for 90 days)
• PPTs (700+ Slides)
• 800+ MCQs and 30+ Case Studies
• Quick revision summary notes.
• Career Guidance/Counseling

The NISM Series XIX-A Certification Examination is designed to establish a knowledge benchmark for individuals working as distributors or placement agents in the domain of Alternative Investment Funds (AIFs).

This voluntary certification focuses on Category I and Category II AIFs, enhancing the quality of sales, distribution, and investor services while equipping professionals with a deeper understanding of the AIF industry.

Upon successful completion of the training, candidates will:

·  Understand Alternative Investments:
Develop a foundational understanding of alternative asset classes, their characteristics, and their role in portfolio management.

·  Comprehend AIF Industry Concepts:
Gain insights into due diligence, investment processes, governance, risk-return dynamics, and fund monitoring.

·  Master AIF Regulatory Frameworks:
Learn about SEBI regulations, FEMA provisions, and the legal environment governing Alternative Investment Funds (AIFs) in India.

·  Evaluate Fund Performance and Structuring:
Understand valuation methodologies, risk metrics, and best practices in fund structuring and performance evaluation.

·  Enhance Distribution and Client Servicing Skills:
Develop expertise in distributor responsibilities, client interaction, fund due diligence, and legal documentation to deliver investor-focused solutions.

Assessment Details:

• 100 Multiple Choice Questions
• 80 multiple-choice questions (1 mark each).
• 5 case-based questions, each with 4 multiple-choice sub-questions (1 mark each).
• Total Marks: 100
• Duration: 2 Hours
• Passing Score: 60%
• Negative Marking: 25% of marks assigned per incorrect answer

·    Certificate Validity: 3 years

* Online Self-paced contents access will be provided for 90 days to the user only.

Test Objectives:

Upon passing the examination, candidates will:

·  Understand Alternative Investments:
Develop a foundational understanding of alternative asset classes, their characteristics, and their role in portfolio management.

·  Comprehend AIF Industry Concepts:
Gain insights into due diligence, investment processes, governance, risk-return dynamics, and fund monitoring.

·  Master AIF Regulatory Frameworks:
Learn about SEBI regulations, FEMA provisions, and the legal environment governing Alternative Investment Funds (AIFs) in India.

·  Evaluate Fund Performance and Structuring:
Understand valuation methodologies, risk metrics, and best practices in fund structuring and performance evaluation.

·  Enhance Distribution and Client Servicing Skills:
Develop expertise in distributor responsibilities, client interaction, fund due diligence, and legal documentation to deliver investor-focused solutions.

Course Details:

• NISM exam registration fees not included in the above mention Course Fee.
• PPTs (700+ Slides), 800+ MCQs, 30+ case studies and PDFs for practice (mock exams & mock paper shared for self-practice).
• Sessions would cover doubt solving from the Mock Exams.
• Online Interactive Session for the practice on software’s required in particular module

Eligibility:

The NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors Certification Examination is suitable for:

·  Associated Professionals:

• Distributors and placement agents working with Alternative Investment Funds in India.
• Employees of SEBI-registered entities involved in AIF sales, distribution, and compliance functions.
• Professionals handling investor servicing, fund structuring, or governance aspects of AIFs.

·  Aspiring Individuals:

• Candidates pursuing 10th, 12th, undergraduate, or postgraduate studies with an interest in alternative investments and financial markets.
• Financial advisors, wealth managers, and portfolio managers seeking specialization in AIFs.
• Individuals aiming to deepen their understanding of fund distribution, valuation, and client-focused solutions.

Curriculum Overview: NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors Certification Examination 

Unit 1: Overview of Alternative Investments

Gain insights into alternative investment avenues, their historical evolution, role in portfolio management, and distinguishing characteristics like ‘alpha’ and ‘beta.’

Unit 2: Alternative Investment Funds in India

Understand the growth and development of AIFs in India, post-2008 trends, categories of AIFs, suitability of AIF products, and the current market landscape.

Unit 3: Concepts in the AIF Industry

Explore critical concepts such as the private capital ecosystem, sponsor and capital commitments, due diligence, co-investments, ESG principles, and key financial metrics like preferred returns and waterfall distributions.

Unit 4: AIF Regulatory Framework

Develop knowledge of the SEBI (Alternative Investment Funds) Regulations, 2012, and relevant provisions of the Foreign Exchange Management Act (FEMA), 1999, impacting AIF operations.

Unit 5: Alternative Investment Fund Structuring

Understand the principle of pooling, structural considerations for AIFs, and templates for fund constitution and governance.

Unit 6: Risk and Return – Fund and Investor Perspective

Analyze the nature and types of debt and equity investments, investor risks in AIFs, and key metrics for measuring returns, including the J curve and worked-out scenarios.

Unit 7: Investment Process and Governance of Funds

Learn about deal sourcing, due diligence reviews, definitive agreements, co-investments, governance structures, and investor protection mechanisms in AIFs.

Unit 8: Fund Due Diligence – Investor Perspective

Examine fund selection processes, manager evaluation, due diligence strategies, and sales approaches for distributors.

Unit 9: Legal Documentation and Negotiation – Investor Perspective

Understand the significance of key legal documents such as trust deeds, partnership agreements, private placement memorandums, and subscription agreements, along with negotiation strategies.

Unit 10: Fund Monitoring, Reporting, and Exit

Master techniques for monitoring fund performance, regulatory reporting, addressing conflicts, secondary market exits, and portfolio company divestitures.

Unit 11: Valuation

Explore valuation basics for fixed income, equity, and businesses, including methods like discounted cash flow, asset-based, and multiple-based valuations, alongside regulatory considerations and the role of valuers.

Unit 12: Taxation – India Specific

Understand the taxation framework for AIFs, including business and investment income taxation, GST, and local taxes, with specific emphasis on residents and non-residents in India.

Unit 13: Good Practices

Learn best practices for AIF distributors, including distributor agreements, pre- and post-distribution services, preparation of distribution pitches, and ethical considerations for client interactions.